What are the economic impacts of Somalia, Ethiopia and Eretria political unification?

There are several economic impacts of Somalia, Ethiopia and Eretria political unification:

1. Tariffs reduction

Tariffs are a tax placed by the government on imports. Tariffs reduction lowers the price for

consumers, leads to an increase in imports, and can lead to Trade liberalization as Free Trade

areas will have no tariffs between member countries and also the reduction of tariffs leads

to trade creation.

Winners and losers of tariffs

2. Employment

Each time trade is created jobs are created and the economy tries to growth, so Somalia,

Ethiopia and Eretria political unification leads to an increase the jobs that is available to their

nations .

3. Economic growth

Political unification contribute to economic growth and development through the establishment

of a strengthened and strategic trade and development partnership consistent with the objective

of sustainable development and Promote regional integration, economic cooperation and good

governance in the region.

Prepared by: Mohamud Mohamed Adam