WAEC Commerce 2021 Theory — Question 5

Model answer

(a) Entrepôt trade is the act of importing goods which will be re-exported; goods are brought into a country for the purpose of exporting them, referred to as entrepôt. (b)(i) A bill of lading is a document issued by a carrier to a shipper detailing the types, quantity and destination of goods carried, and signed by the consignee on delivery. A consignment note is a document containing details of the goods sent, and it is a title to the goods; it is issued by the sender/consignor (receiver's copy) rather than the carrier. (ii) A bill of sight is a document used in international trade where importers are required to complete the appropriate entry document if there is insufficient information about the cargo to determine the correct duty in advance. (c) Criticism against advertising: 1. Majority of advertising is deceptive. 2. Advertising adds to the cost of goods. 3. At times, it may lead to monopoly. 4. It may lead to unhealthy competition among firms. 5. Advertising can lead to multiplication of needs.