JAMB Commerce questions: Foreign trade

21 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· Foreign trade· JAMB

   Goods imported into a country only to be re-exported to another country are involved in

   • Aentrepôt trade
   • Bbarter trade
   • Ccounter trade
   • Dretail trade

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   Explanation and discussion

2. Question 2· Foreign trade· JAMB

   A consular invoice is required to

   • Apay freight
   • Bcertify the value and origin of goods for customs
   • Cinsure goods
   • Dtransport goods

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   Explanation and discussion

3. Question 3· Foreign trade· JAMB

   The Nigerian Export Promotion Council exists mainly to

   • Aimport goods
   • Bencourage non-oil exports
   • Ccollect customs duty
   • Dregulate banks

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   Explanation and discussion

4. Question 4· Foreign trade· JAMB

   An import licence is a document that

   • Ais a receipt for freight
   • Bproves goods were insured
   • Cshows the ship's route
   • Dauthorises a trader to bring specified goods into the country

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5. Question 5· Foreign trade· JAMB

   An open indent leaves the choice of

   • Aport to the government
   • Bprice to the buyer
   • Cgoods to the customs
   • Dmanufacturer to the agent

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6. Question 6· Foreign trade· JAMB

   A country's balance of payments records

   • Athe government budget
   • Bvisible trade only
   • Cvisible and invisible trade and capital flows
   • Dbank deposits

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7. Question 7· Foreign trade· JAMB

   The document certified by the consulate of the importing country to confirm the value and origin of goods is the

   • Abill of lading
   • Bconsular invoice
   • Cshipping note
   • Dindent

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8. Question 8· Foreign trade· JAMB

   Which of these is an invisible export for Nigeria?

   • ASpending by foreign tourists in Nigeria
   • BCrude oil sold abroad
   • CCocoa shipped to Europe
   • DCars imported from Japan

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9. Question 9· Foreign trade· JAMB

   Buying goods from other countries for resale in one's own country is

   • Aentrepôt trade
   • Bexport trade
   • Cimport trade
   • Dhome trade

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10. Question 10· Foreign trade· JAMB

    A C.I.F. price in foreign trade includes

    • Ainsurance only
    • Bcost only
    • Ccost, insurance and freight to the port of destination
    • Dimport duty

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11. Question 11· Foreign trade· JAMB

    CIF means the price includes

    • Acash in full
    • Bcustoms, interest and fees
    • Ccost, insurance and freight
    • Dcarriage in factory

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12. Question 12· Foreign trade· JAMB

    The difference between the values of visible exports and visible imports is the

    • Abalance of payments
    • Bbalance of trade
    • Cterms of trade
    • Dinvisible balance

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13. Question 13· Foreign trade· JAMB

    The Nigeria Customs Service is responsible for

    • Acollecting import and export duties
    • Bissuing passports
    • Cconducting elections
    • Dprinting money

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14. Question 14· Foreign trade· JAMB

    Exchange control is used by government to

    • Aprint money
    • Bban all trade
    • Cregulate the use of foreign currency
    • Dfix wages

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15. Question 15· Foreign trade· JAMB

    Free on board (FOB) means the seller pays costs

    • Aonly for packaging
    • Buntil the goods reach the buyer
    • Cuntil the goods are loaded on the ship
    • Dfor insurance at sea

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16. Question 16· Foreign trade· JAMB

    An importer's bank promises to pay the exporter once the shipping documents are presented. This method of payment is

    • Aa money order
    • Ba bank draft
    • Ca standing order
    • Da letter of credit

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17. Question 17· Foreign trade· JAMB

    Under an F.O.B. price, the exporter pays all costs until the goods are

    • Adelivered to the buyer's warehouse
    • Bloaded on board the ship
    • Cinsured
    • Dcleared through customs at the destination

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18. Question 18· Foreign trade· JAMB

    A country has a favourable balance of trade when

    • Aits currency is devalued
    • Bits invisible imports exceed its exports
    • Cit borrows from the IMF
    • Dits visible exports exceed its visible imports

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19. Question 19· Foreign trade· JAMB

    An embargo is

    • Aa subsidy
    • Ba tax on imports
    • Ca limit on quantity
    • Da total ban on trade with a country or in a product

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20. Question 20· Foreign trade· JAMB

    A certificate of origin shows

    • Athe price of the goods
    • Bthe country where the goods were produced
    • Cthe ship's name
    • Dthe buyer's bank

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    Explanation and discussion