An Assessment on the Challenges of International Trade: The Case Study of Zimbabwe

Zimbabwe as a developing nation is still performing towards a positive trade balance for the past decade. Importation and exportation are the defining financial transactions of international trade. Zimbabwe is known as a net-importer, in the view of the fact that imports are more than exports. To observe the challenges faced in this trade business is of great importance to determine the country's development path. The study seeks to analyze the challenges faced by various industrial sectors in Zimbabwe over the years from 1980 to 2021, paying particular attention to the periodic trends. Main exports for Zimbabwe remain primary products which are unprocessed, while the country imports finished products that have been value added. The study also explores the relationship between the trade balance components, being imports and exports. Using trading volumes, exports and imports, as dependent variables, an ordinary least squares regression, the study employed a trend analysis and a statistical analysis to attain its study objectives. Political instability, trade facilitation, inflation and gross fixed capital formation were suggested to be the dependent variables and their impact on trade volumes, exports and imports were analyzed. A sample of certain sectors of the economy that were also considered in the study include the manufacturing industries and mining industry. The questionnaires that were administered show the impact of economic instability to the challenges faced in the international business.