Commerce Paper 2

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MOCK EXAMINATION 2017

COMMERCE PAPER 2

TIME: 2 HRS Marks: 80

INSTRUCTIONS

1. Answer ANY FOUR questions.

2. Use the answer sheet provided for the answer.

For Tutor’s use

Marks Scored

Total Marks
Question 1

It is very important for Botswana to make sure that goods entering the borders are closely
monitored. It is very important for the country because the economy rely heavily on them.

(a) Discuss the functions of customs and excise authority in Botswana? [9]
(b) Identify non dutiable goods in Botswana? [2]
(c) Explain the disadvantages of custom duties to a country? [6]
(d) Discuss the importance of the certificate of insurance to the exporter? [3]

Question 2

Every organization need a department that is responsible for communication or public relations
to make sure that customers and traders save a lot of time going to the manufacturers and retail
stores and find that what they want is not available or has not yet arrived.

(a) Explain the importance of effective communication to the enterprise? [8]

(b) Warehousing is also important for any business to continue with production. Without
warehousing production can be slow or the business could not make profit. Justify this
statement? [6]

(c) State the rules of storing different types of stock? [3]

(d) Show up the follow – up procedure after the receipt of the order? [3]

Question 3

(a) Discuss the functions of the wholesaler? [6]

(b) Describe the characteristics of cash and specialist wholesaler. [4]


Study the following diagram and answer the questions below.

Figure 1
Producer Wholesaler/Retailer Consumer

(c) Explain the factors leading to the elimination of the wholesaler from the above chain of
distribution. [6]

(d) Explain why wholesaler would join with the retailers [4]

Question 4

The government always tries to help the exporters and importers in order to make trading
successful. The device strategies and ways to overcome problems importers and exporters face.

(a) Explain the importance of

i) Botswana Export Development and Investment Authority and [4]

ii) Botswana Export Credit insurance [4]

(b) Explain how the government of Botswana can assist exporters and importers? [6]

(c) List two middle men in foreign trade? [2]

Banks are very important finance houses they help importers and exporters with selling of their
goods to other countries. In most cases importers and exporters cannot do business without a
little helping hand from the banks. Apart from loans there are other services that banks extend to
these business men and women.

(d) Show how commercial banks help to facilitate foreign trade? [4]

Question 5

(a) Discuss services that can be offered by the bank to their customers [9]

(b) Explain the importance of electronic commerce to both the trader and the customer. [6]

(c) What is e-commerce [1]


(d) Discuss the importance of computers in trading. [4]

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