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WAEC Commerce 2025 Question 31

Question 31

Foreign Trade Documents

The price quoted when the exporter bears all the expenses up to the port of departure is

  1. A.F.A.S.
  2. B.F.I.S.
  3. C.F.O.B.
  4. D.LOCO.
Show the answer and explanation

Answer: C (F.O.B.)

Explanation

Under FOB (free on board) the exporter pays all costs until the goods are loaded on the ship at the port of departure; the buyer pays from there.