Correct Answer: A. consular invoice

Correct Answer: D. Brand of vehicle

Correct Answer: C. 6 months

Correct Answer: D. surrender legal rights after compensation

Explanation

(a) The measures taken by a country to restrict imports are:

(i) Import licence: The government stipulates that certain goods should only be imported under licence. This limits the quantity of such goods to be imported.

(ii)Exchange control: Imports can be restricted by making it difficult for importers to get foreign exchange to import certain goods.

(iii)Tariffs: High custom duties could be imposed on imports to discourage their importation.

(iv)Quotas: A limit is set to the quantity of certain goods that could be imported.

(v)Outright ban: A government may decide to place embargo on the importation of some goods.

(vi)Subsidies: Government may decide to embark on giving some incentives aimed at helping home industries to produce hitherto imported goods.

(b) The measures taken by a country to encourage or promote export include:

(i) The government could organise trade fairs and exhibitions within and outside the country to attract foreign buyers.

(ii) The government could liberalize the process of granting credit facilities to exporters.

(iii) Subsidies can be granted to industries producing exportable goods.

(iv)Devaluation: -The government can lower the value of her currency vis-a-vis foreign currency thus making her country a cheap place to buy from.

(v) The government can provide market intelligence to exporters by providing them with facts and trends in foreign market.

(vi) Export credit guarantee: Government may provide an insurance cover against bad debts for exporters.

(vii) The government can create export free zone or export promotion council.

(viii) Governments can also negotiate or join membership of international trade association aimed at removing barriers to free flow of trade.

(ix) The government can remove tariffs on goods presented for export.

(x) Government can embark on improvement of sea and airport facilities and liberalisation of port bureaucracy.

(xi) The government can establish standard organisations to help improve the quality of goods to meet international standards.

Correct Answer: C. stocks

Explanation

(a) The functions performed by the wholesaler in the channel of distribution include:

(i) He engages in bulk breaking by buying in large quantity from the manufacturer and selling in bits to the retailers.

(ii) He warehouses goods.

(iii) He helps to complete the process of production by labelling, prepackaging and branding goods.

(iv) He sells on credit to retailers

(v) He finances the manufacturer by paying for goods in advance

(vi) He transports goods through his own fleet of vehicles.

(vii) The wholesaler markets the goods by advertising, demonstrating and displaying them as needed.

(viii) He liaises between the manufacturer and retailers and disseminates the views of one to the other.

(b) The factors that encourage the elimination of middlemen from the channel of distribution are:

(i) Manufacturers with good transport and communication facilities will prefer to deliver the goods themselves.

(ii) Improved credit facilities from banks and other financial houses have rendered the role of middlemen in financing the manufacturer less important.

(iii) Fragile and technical goods that require special handling need no middlemen as manufacturers prefer to deal directly with the consumers.

(iv) Goods of high unit value do not need to be entrusted to middlemen.

(v) The need by manufacturers to control the market for their goods and prevent hoarding since middlemen carry competing brands, makes the manufacturers deal directly with the consumers and thus eliminate middlemen.

(vi) Some manufacturers now choose to spend more on advertising to create awareness and hence demand for their products, instead of using the middlemen.

(vii) Manufacturers may eliminate the middlemen because of the need to obtain immediate feedback from the consumers.

(ix) Manufacturers may eliminate middlemen to avoid adulteration of goods.

(x) Where there is a high demand for a product, the manufacturer may choose to eliminate middlemen in order to meet the demand promptly and adequately.

Correct Answer: B. re-insurance

Correct Answer: B. chain store

Correct Answer: D. Crossed cheque