Neco Model Questions Vol1 2025 Commerce Question 4

Practice essay / theory question 4 from the 2025 Neco Model Questions Vol1 Commerce examination. This question covers Foreign Trade .

Neco Model Questions Vol1 2025 Commerce Essay / Theory
Topic: Foreign Trade
Question 4 NECO_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • essay

Nigeria imports a specific electronic component from Country X. The import data for the last three years are as follows: Year 1: 5,000 units, unit cost US$12, exchange rate ₦410/US$, import duty 5%, shipping 8% of CIF value. Year 2: 6,000 units, unit cost US$13, exchange rate ₦415/US$, same duty and shipping rates. Year 3: 5,500 units, unit cost US$14, exchange rate ₦420/US$, same duty and shipping rates. CIF (Cost, Insurance, Freight) value is the product of quantity, unit cost and the prevailing exchange rate. Answer the following:

Question Parts

( a )
Calculate the total cost in Naira for each year, including duty and shipping.
( b )
Determine the average annual growth rate in total import cost over the three‑year period.
( c )
Discuss two macro‑economic implications of the rising import cost for Nigeria’s balance of payments.
( d )
Suggest two policy measures the government could adopt to reduce the pressure on foreign‑exchange reserves arising from such imports, providing justification for each.

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About This Question

This is Neco Model Questions Vol1 2025 Commerce Question 4. It is one of the essay questions from the 2025 Neco Model Questions Vol1 Commerce examination.

The question covers Foreign Trade .

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