Neco Model Questions Vol1 2022 Commerce Question 4
Practice essay / theory question 4 from the 2022 Neco Model Questions Vol1 Commerce examination. This question covers Foreign Trade, Export Pricing, Exchange Rate, Export Duty, Freight Cost, Profitability .
A Nigerian exporter ships 10,000 kg of cocoa to a European buyer. The contract price is €2 per kilogram. At the time the contract is signed the exchange rate is ₦560 per €. By the time the cargo arrives the rate has moved to ₦590 per €. An export duty of 5 % of the FOB value and a freight charge of 2 % of the FOB value are applicable.
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This is Neco Model Questions Vol1 2022 Commerce Question 4. It is one of the essay questions from the 2022 Neco Model Questions Vol1 Commerce examination.
The question covers Foreign Trade, Export Pricing, Exchange Rate, Export Duty, Freight Cost, Profitability .
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