Neco Model Questions Vol1 2018 Commerce Question 4

Practice essay / theory question 4 from the 2018 Neco Model Questions Vol1 Commerce examination. This question covers Foreign Trade, Export Pricing, Exchange Rate, Export Duty, VAT .

Neco Model Questions Vol1 2018 Commerce Essay / Theory
Topics: Foreign Trade Export Pricing Exchange Rate Export Duty VAT
Question 4 NECO_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • essay

A Nigerian cocoa exporter receives an order for 20 metric tonnes of cocoa beans from a buyer in the United Kingdom. The contract specifies a price of US$2,500 per tonne, freight charges of US$150 per tonne, and that the buyer will pay in US dollars. The current exchange rate is ₦750 per US$. The Nigerian government imposes a 5 % export duty on the value of the goods (excluding freight) and a 2 % value‑added tax (VAT) on the total customs value (goods + freight).

Question Parts

( a )
Calculate the total invoice amount in US dollars (goods + freight).

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

The question covers Foreign Trade, Export Pricing, Exchange Rate, Export Duty, VAT .

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