a. Foreign trade is the exchange of goods and services across international borders, involving imports and exports. In Ghana, this includes exporting cocoa and importing machinery, facilitated by banks like GCB handling letters of credit under BoG’s foreign exchange regulations.

b. Four advantages of foreign trade include:

• Access to diverse goods: Allowing Ghana to import technology not produced locally, enhancing productivity.
• Economic growth: Through export earnings, like gold, funding infrastructure via bank loans.
• Employment creation: In export sectors, reducing unemployment as per GNP objectives.
• Efficiency gains: Via comparative advantage, e.g., Ghana specializing in oil while importing refined products.

c. Five measures which the government generally uses to interfere with foreign trade include:

• Tariffs: Taxes on imports to protect local industries, as in Ghana’s ECOWAS common external tariff.
• Quotas: Limits on import quantities, e.g., on rice to support local farmers.
• Subsidies: To exporters, boosting competitiveness like in Ghana’s cocoa sector.
• Exchange controls: Regulating currency flows per BoG directives.
• Embargoes: Bans on trade with specific countries for policy reasons.