Trade
Commerce · 50 practice questions
Home trade — retail trade (types/functions of retailers, factors in setting up, trends e.g. branding/self-service/vending machines, advantages/disadvantages) and wholesale trade (types e.g. merchant/agent/general, functions, advantages/disadvantages); foreign trade — basic issues (balance of trade, balance of payments, countertrade), procedures/documents for export/import/entrepôt trade, barriers to international trade, and the role of Customs and Excise/Ports Authority.
- Compare the various types of retailers and wholesalers and identify their functions.
- Classify modern retailing practices and outline the merits/demerits of middlemen.
- Analyse the basic issues in foreign trade and explain its procedures/documents.
- Identify barriers to international trade and appraise the role of government agencies in it.
Try a few questions
- Practice question 1
'Balance of payments' is a broader concept than 'balance of trade' because balance of payments includes
- A.Only the value of a country's currency reserves
- B.Both visible trade (goods) and invisible trade (services, investment flows, etc.) between a country and the rest of the world
- C.Only the value of visible exports and imports
- D.Only government tax revenue
Show the answer
B. Both visible trade (goods) and invisible trade (services, investment flows, etc.) between a country and the rest of the world
Balance of payments covers both visible trade and invisible trade (services, investment flows) with the rest of the world.
- Practice question 2
A 'barrier to international trade' such as an import tariff is generally imposed by a government mainly to
- A.Reduce the price of imported goods for consumers
- B.Encourage unrestricted foreign competition
- C.Protect domestic industries from foreign competition or raise government revenue
- D.Eliminate all forms of foreign trade permanently
Show the answer
C. Protect domestic industries from foreign competition or raise government revenue
Tariffs are imposed mainly to protect domestic industries from foreign competition or to raise government revenue.
- Practice question 3
'Dumping' in international trade refers to the practice of a country or company
- A.Selling goods abroad at a fair market price reflecting production costs
- B.Refusing to export any goods to foreign markets
- C.Exporting goods to a foreign market at a price lower than its normal domestic price or cost of production, often to undercut competitors
- D.Only importing goods, never exporting any
Show the answer
C. Exporting goods to a foreign market at a price lower than its normal domestic price or cost of production, often to undercut competitors
Dumping is exporting goods at below their normal domestic price/cost, often to undercut foreign competitors unfairly.
More UTME Commerce topics
Practise with instant feedback
Answer questions one at a time and see the right answer and the reason straight away. Free to start.
Start practising