IPC3702
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 28 MARCH 2025
, Comparing South Africa and Nigeria in International Trade and the Global Economy
Introduction
The international political economy (IPE) comprises a network of bargains between states, where
power serves as the bargaining commodity, and markets revolve around wealth (Gilpin, 2001).
States influence global trade through economic policies, market control, and participation in
international trade organizations. South Africa and Nigeria, two of Africa’s largest economies,
play significant roles in commodity trade and regional economic dynamics. South Africa has a
diversified economy with strong manufacturing and financial sectors, while Nigeria relies
heavily on oil exports. This essay compares their influence in international trade and the global
economy, highlighting key trade policies, market impact, and international participation.
Theoretical Framework
International trade theories provide insight into how states engage in the global economy.
Mercantilism suggests that states maximize wealth through trade surpluses and
government intervention (Chang, 2002). South Africa’s industrial policies align with this
theory, as it promotes manufacturing and export-driven growth.
Liberalism supports free trade and market-driven economies (Smith, 1776). Nigeria’s oil
economy largely follows liberal principles, attracting foreign direct investment (FDI)
while maintaining minimal state intervention.
Dependency Theory highlights how developing economies rely on raw material exports
while developed nations control manufacturing and finance (Frank, 1967). Nigeria’s
heavy reliance on oil exports and South Africa’s industrial economy reflect this dynamic.
South Africa’s Role in Global Trade
South Africa is Africa’s most industrialized nation and a major exporter of minerals,
manufactured goods, and financial services (OECD, 2023).
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 28 MARCH 2025
, Comparing South Africa and Nigeria in International Trade and the Global Economy
Introduction
The international political economy (IPE) comprises a network of bargains between states, where
power serves as the bargaining commodity, and markets revolve around wealth (Gilpin, 2001).
States influence global trade through economic policies, market control, and participation in
international trade organizations. South Africa and Nigeria, two of Africa’s largest economies,
play significant roles in commodity trade and regional economic dynamics. South Africa has a
diversified economy with strong manufacturing and financial sectors, while Nigeria relies
heavily on oil exports. This essay compares their influence in international trade and the global
economy, highlighting key trade policies, market impact, and international participation.
Theoretical Framework
International trade theories provide insight into how states engage in the global economy.
Mercantilism suggests that states maximize wealth through trade surpluses and
government intervention (Chang, 2002). South Africa’s industrial policies align with this
theory, as it promotes manufacturing and export-driven growth.
Liberalism supports free trade and market-driven economies (Smith, 1776). Nigeria’s oil
economy largely follows liberal principles, attracting foreign direct investment (FDI)
while maintaining minimal state intervention.
Dependency Theory highlights how developing economies rely on raw material exports
while developed nations control manufacturing and finance (Frank, 1967). Nigeria’s
heavy reliance on oil exports and South Africa’s industrial economy reflect this dynamic.
South Africa’s Role in Global Trade
South Africa is Africa’s most industrialized nation and a major exporter of minerals,
manufactured goods, and financial services (OECD, 2023).
