Waec Model Questions Vol1 2018 Commerce Question 4

Practice essay / theory question 4 from the 2018 Waec Model Questions Vol1 Commerce examination. This question covers Foreign Trade .

Waec Model Questions Vol1 2018 Commerce Essay / Theory

Topic: Foreign Trade

Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • essay

A Nigerian cocoa exporter ships 2,000 tonnes of cocoa to Europe. The FOB price is ₦12,000 per tonne. Shipping and insurance add ₦1,500 per tonne (CIF cost). The current spot exchange rate is ₦410 = €1. The exporter receives payment in euros and converts the amount to naira. The government imposes a 5 % export tax on the FOB value.

Question Parts

( a )

Calculate the total foreign currency (in euros) earned from the export before any tax is deducted.

( b )

Determine the net naira proceeds after converting the euros at the spot rate, adding the shipping/insurance cost, and deducting the export tax.

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About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 4. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Commerce examination.

The question covers Foreign Trade .

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