Introduction to International Trade (GSDR2117)
Higher Institute of Transport and Logistics (HITL)
Semester: First Semester
Level: 200
Year: 2015
School/Faculty: HITL DEPARTMENT: LECTURER(S): Mme Martha Yuhia SHEY
Level: SEMESTER: 1 Academic Year: 2016/2017
COURSE CODE: TL1103 COURSE TITLE: Introduction to International Trade
DATE: 16/05/2015 HALL: 1 & 2 TIME: 12:00 – 14:00
Instructions: Answer 2 out of 3 Questions. All Questions carry equal marks
THE UNIVERSITY OF BAMENDA
P.O BOX 39 Bambili
REPUBLIC OF CAMEROON
Peace-Work-Fatherland
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. 17 0
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Question 1
If in the past, SMEs penetrated the international markets by seizing opportunities, without any real
preliminary study; today companies need to know their target market and to segment their offer.
a)
Because exportation is important for the sustainability of a firm, describe 3 important
steps to be taken before engaging in foreign trade
b)
Give a brief description of an export commercial strategy
c)
The outcome of the export strategy is represented in form of a diagram called the
SWOT Analysis, how would you define it. How is it represented?
d)
What difficulties would we likely encounter during a market survey?
e)
What-are market penetration pathways? What are the pros and cons of each pathway?
Question 2
Engaging in international trade entails risks. While some are related to the client, others are related
to the country. Yet some are rather “general”, that is independent of the client or the country
concerned.
a)
Name 4 Types of country risks (giving one example of each type)
b)
Amongst general risks are credit risk and transportation risk. Briefly describe each of
these risks and name 3 methods of protecting a company against each of them?
c)
Your company dealing in mobile phones has placed an order for the latest “iPhone
6”each worth 500,000cfa. 1 box containing 100 iPhones having a gross weight of 150 kg
shipped by air from New York to C: arrives completely damaged. Unfortunately your
company did not subscribe a transport insurance.
-From whom will you get compensation and why?
-How much will your company receive as compensation? (NB: 1 SDR = 800 cfa).
-What treaty governs transporter liability in Air transport?
-What c an you draw as conclusion?
d)
What is a Documentary credit (Letter of Credit), describe its mechanism. When do we
talk of a “confirmed” Letter of credit?
e)
Distinguish between a Letter of Credit and a Stand-by Letter of credit
Question 3
The fear of the unknown tends to make people have a negative image of the Customs. In other to
change this negative image, we need to understand the missions of customs as well as its
functioning.
a)
Define Customs and describe 4 principal missions of the customs
b)
What do you understand by “customs declaration of goods"?
c)
To clear goods through customs, 3 elements are necessary, define them.
d)
A customs procedure determines the judicial status of goods - distinguish between
definitive and economic procedures. In what circumstances would you opt for economic
procedures?
e)
Describe 3 types of customs duties and taxes levied on imports.
Good Luck
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