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WAEC Commerce 2014 Question 1

Question 1

Foreign Trade Documents

A price quotation which includes all the expenses involved in loading the goods into a ship is

  1. A.Free on Board (FOB).
  2. B.Free Alongside Ship (FAS).
  3. C.Cost, Insurance, Freight (C.I.F.).
  4. D.ex-ship.
Show the answer and explanation

Answer: A (Free on Board (FOB).)

Explanation

An FOB price covers all costs up to loading the goods on board the ship.