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Form 4 Business Studies questions and answers on international trade

Explain the significance of each of the following documents as used in international trade.
-Bill of lading
-Proforma invoice
-Letter of credit

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Explanation/Answer Text:
-Bill of lading: it is a document used in transporting goods by ship. It enables the holder to take possession of goods imported

-Proforma invoice: A document sent in advance of goods being exported.
-Indent: An order placed with agent of exporter. It is used to assist the exporter of the agent to know where to buy goods. It is used to assist the agent to select on exporters.

-Letter of credit: A official letter from the bank allowing
another bank in foreign country to pay an exporter on the behalf of the importer.
Questions/Lessons List

1. Outline four benefits that Kenya derives by being a member of preferential Trade Area (PTA) ( free lesson)

2. Give four reasons why it may be necessary for a country to control imports ( free lesson)

3. State four benefits that a country may derive from participating in international trade ( free lesson)

4. State for methods of controlling imports ( free lesson)

5. State measures that Kenya may take to promote her exports ( free lesson)

6. State four factors that may limit the success of trade agreements among African countries. ( free lesson)

7. State the business document to which each of the following relates. a)Informs the buyer when goods were dispatched and by what means: b)A request by the seller for payment in advance c)Used to correct an undercharge in an invoice. d)Shows details of t ( free lesson)

8. Highlight four problems a country may have by participating in international trade. ( free lesson)

9. Outline four circumstances under which a proforma invoice may be used. ( free lesson)

10. Explain the following terms as used in international trade. a)LOCO b)FOR c)FAS d)Bill of landing ( free lesson)

11. Country X has recorded a surplus balance of payments from its foreign trade. Outline four ways in which the country can spend these surplus earnings. ( free lesson)

12. Outline five transactions which are recorded in balance of payment account of a country. ( free lesson)

13. Explain the meaning and significance of the following terms as used in foreign trade. -Terms of trade -Exchange rate -Common market ( free lesson)

14. Explain the significance of each of the following documents as used in international trade. -Bill of lading -Proforma invoice -Letter of credit ( free lesson)

15. Country X has obtained a surplus in its balance of payment. Explain the factors that may have contributed to this. ( free lesson)

16. Explain the factors that may lead to deteriorating terms of trade in a country. ( free lesson)

17. Highlight five benefits that Kenya gets from tading with other countries. ( free lesson)

18. The domestic currency of a particular country has been depreciating over time. Highlight five disadvantages of the depreciating of the country. ( free lesson)

19. Highlight five ways in which the bill of lading is useful to an importer of goods. ( free lesson)

20. Outline reasons why a country would impose measures aimed at restricting trade with other countries. ( free lesson)

21. Explain how the IMF is beneficial to developing economies ( free lesson)

22. Outline four ways that the world bank may use to assist developing countries to improve their economy. ( free lesson)

23. Discuss five reasons why less developed countries are reluctant in implementing free trade agreement ( free lesson)

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