Gce Model Questions Vol1 2024 Commerce Question 4
Practice essay / theory question 4 from the 2024 Gce Model Questions Vol1 Commerce examination. This question covers Foreign Trade .
A Nigerian importer wishes to import 5,000 kg of cocoa beans from Ghana. The invoice price is US$2 per kilogram. The current exchange rate is ₦750 per US$1. Import duty is 5 % of the customs value and a surcharge of 2 % is also levied on the customs value. Freight costs amount to ₦150,000 and insurance is charged at 0.5 % of the CIF value. To guard against exchange‑rate fluctuations, the importer has entered a forward contract that fixes the rate at ₦770 per US$1 for payment due in three months. After three months the spot rate has moved to ₦800 per US$1.
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This is Gce Model Questions Vol1 2024 Commerce Question 4. It is one of the essay questions from the 2024 Gce Model Questions Vol1 Commerce examination.
The question covers Foreign Trade .
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