Five factors that determine the volume of trade between Nigeria and Ghana include:
(i) If the goods produced by both countries are not similar. If they are not similar, the volume of trade will increase, but if they are similar the volume of trade is going to be reduced.
(ii) Differences in climatic conditions: If there are differences in climatic conditions necessary for the production of certain crops, both countries will specialise in the production of different crops which will eventually lead to exchange of goods but if the climatic conditions are the same, both will specialise in the production of the same crops
(iii) The degree of industrial development: If one of the countries develops more industrially than the other, one will definitely demand for more manufactured goods than the other, hence exchange of goods (international trade)
(iv) Prices of goods offered: It the prices of goods offered by one of the countries is higher than what other countries may offer, the volume of trade will be increased but if the prices are low, one will expect a low volume of trade
(v) Foreign exchange earnings: If the foreign exchange earnings from both countries are high, then the volume of trade will increase but if the earnings are low the volume of trade will also be low
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