Correct Answer: B. face-to-face communication with customers

Correct Answer: A. product differentiation

Correct Answer: A. could be misleading

Explanation

Some advertisment may be false and misleading as they make exaggerated claims. Also it leads to monopoly and encourages buyers to make unncessary purchase.

Explanation

(a) Service rendered by courier companies:

i. They deliver important parcels and documents quickly and safely to their destinations.

ii. They provide air cargo and shipping services for their customers

iii. They provide recorded delivery services to a named customer/person/institution.

iv. They provide postal delivery services to remote areas.

v. They handle and deliver cash on behalf of customers

vi. They engage in business reply services as well as mail order business for their customers.

vii. They render door-to-door delivery.

(b) Advantages of rail transport:

i. It is suitable for the conveyance of heavy and bulky goods over long distances.

ii. It provides convenience services for passengers.

iii. It is a relatively safe means of transport.

iv. It operates on schedules.

v. It is very cheap because it has a standard rate of charges to passengers.

vi. It is not affected by traffic congestion or holds up.

Disadvantages of rail transport:

i. It requires a large capital outlay which individuals or small firms cannot afford.

ii. It is not flexible as it is not available everywhere.

iii. There is a high cost of maintaining the train and its rail tracks.

iv. Wherever there is an accident, the loss of life and goods is very enormous.

v. Goods sent by rail will require transshipment.

vi. It is slow on short distances.

vii. It is not suitable for perishable goods.

Explanation

(a)Benefits enjoyed by countries engaged in Foreign Trade

• Foreign trade creates additional market for goods and services.
• It makes it possible for countries to obtain goods they could not produce either because of lack of natural resources or capital.
• It confers comparative cost advantage which encourages mass production of goods and services/specialisation.
• Foreign trade creates Job opportunities for member countries
• It generates more revenue for the nations involved.
• It encourages inter-dependence among nations
• Foreign trade facilitates the transfer of technology.
• It fosters close economic ties and diplomatic relations among trading nations.
• It increases variety/choice of goods and services thereby increasing standards of living.

(b)Measures to correct unfavourable Balance of Payment

• Outright ban on imports to discourage importation of goods and services.
• Drawing from foreign exchange reserves to offset the adverse balance of payment.
• Export promotion- increase export of both visible and invisible goods (encouraging home/local production).
• Devaluation of currency to attract foreign investors.
• Borrowing from international financial institutions e.g. IMF(International Monetary fund).
• Sale of a country’s asset or gold reserves
• Exchange control regulation- the amount of foreign exchange that could be held by citizens could be controlled.
• Obtaining grants and debt cancellation from friendly countries can be used to offset unfavourable balance of payments.
• Reduction in importation of goods through the imposition of tariffs, quotas etc.
• Promotion of import substitution industries.

Correct Answer: C. a nominal partner

Correct Answer: A. ex-dividend

Correct Answer: D. costs, insurance and freight

Correct Answer: C) political environment

Explanation

Administrative sub-divisions of a country refer to the different regions, states, provinces, or districts within a country that have their own local governments and administrative structures. These divisions help to ensure that the country is effectively governed and that services are provided to its citizens at the local level.

Therefore, the existing system of governance and the administrative sub-divisions of a country are described as part of the political environment. This means that they are related to the political systems, processes, and structures that determine how a country is governed.

To learn more about this, please read the relevant sections of the recommended textbooks.

Explanation

(a) Objectives of International Monetary Fund (IMF):

(i) To provide international monetary cooperation.

(ii) To encourage the expansion of international trade.

(iii) To encourage stabilization of exchange of exchange rates.

(iv) To make resources (foreign currency or gold) available from a fund to any member country to enable it correct balance of payment problem.

(v) To lessen the extent of disequilibrium (inequality) in the balance of payments of members

(vi) To reduce exchange controls on payments for current transactions among member countries.

(vii) To liberalize trade among member countries.

(b) Objectives of European Economic Community (EEC) (now European Union (EU) European Community (EC).

(i) To eliminate all tariffs and quotas between member countries.

(ii) To establish a common external tariffs on all goods imported from outside the EEC.

(iii) To encourage the free movement of service, capital and people.

(iv) To evolve common policies for agriculture, transport and communication.

(v) To stabilize currency fluctuations between EU countries and the introduction of monetary union with a single currency (Euro).

(vi) To maintain a free trade area through the removal of trade barriers.