(ix) A wholesaler may offer credit terms or deferred payments to retailers, while a retailer typically expects immediate payment from customers at the point of sale.
(x) A wholesaler generally has a lower profit margin due to selling in bulk, while a retailer usually has a higher profit margin as they sell smaller quantities at higher prices.
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(5a)
International trade refers to the exchange of goods, services, and capital between countries. It involves imports and exports and plays a crucial role in fostering economic growth and global relationships.
(5b)
(PICK FOUR ONLY)
(i) Access to resources: Countries engage in international trade to access resources, products, and materials they lack or cannot produce efficiently.
(ii) Specialization: Nations trade to focus on producing goods and services they are most efficient at, benefiting from the principle of comparative advantage.
(iii) Market expansion: Through international trade, countries can reach larger markets for their goods and services, increasing sales and profits.
(iv) Variety of goods: International trade enables consumers to access a greater variety of goods and services that may not be available locally.
(v) Economic growth: By participating in international trade, countries can boost their economic growth through increased production, employment, and technological advancement.
(vi) Increased competition: Trade with other countries encourages competition, which can lead to innovation, better quality products, and lower prices.
(vii) Foreign exchange earnings: Countries can earn foreign currency through exports, which is necessary to pay for imports and balance international payments.
(viii) Cultural exchange: International trade can also promote cultural exchange by introducing new ideas, customs, and technologies between countries.
(5c)
(PICK TWO ONLY)
(i) Both international trade and internal trade involve the exchange of goods and services between buyers and sellers.
(ii) In both types of trade, the transactions contribute to the overall economy by involving the production, distribution, and consumption of goods.
(iii) Prices in both international and internal trade are influenced by market demand, supply, and competition.
(iv) Both forms of trade involve intermediaries such as wholesalers, retailers, and transporters who facilitate the movement of goods.
(v) Both international trade and internal trade are subject to regulations and policies that govern the movement of goods, such as tariffs, taxes, and quality standards.
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(6i)
Export: Export refers to the sale of goods and services produced in one country to buyers in another country. It is an important aspect of international trade that allows a country to earn foreign exchange and expand its market reach. Exports contribute to a nation's economic growth, increase employment, and help balance trade deficits.
(6ii)
Import: Import refers to the purchase of goods and services from foreign countries for consumption, production, or resale within the domestic market. Imports enable consumers and businesses to access goods that are unavailable or more cost-effective from local sources.
(6iii)
Balance of Trade: Balance of trade is the difference between the value of a country's exports and imports over a certain period. If a country exports more than it imports, it has a trade surplus. If a country imports more than it exports, it experiences a trade deficit.
(6iv)
Balance of Payment: The balance of payment is a comprehensive record of all economic transactions between residents of a country and the rest of the world over a specific period. It includes the trade balance, capital flows, and financial transfers.
(6v)
Export Drive: An export drive refers to a government or business initiative aimed at increasing a countryโs export activity. This is often done through policies like reducing export taxes, offering subsidies or incentives to exporters, improving infrastructure, and promoting international marketing.