WAEC Commerce 2004 Theory question 102

Theory question 102

Foreign Trade

Commerce 2 (essay, answer five questions only)
List and explain five problems associated with international trade

Show the model answer
Model answer

Any five, explained: different currencies/exchange rates; language barriers; different laws, customs and weights and measures; long distances and high transport costs; many documents and formalities; trade restrictions (tariffs, quotas); risks of goods in transit; difficulty assessing buyers' creditworthiness; political instability; delays in payment.

Explanation

Explain each problem briefly.