i)Terms of trade: the rate at which exports on one country
exchanges with imports. ToT = Price index of exports
determines whether the trade between one country and another is
favorable.
ii)Balance of payment: the difference between both capital and
current exports and imports of a country. If the value of exports
is higher, the country experiences a surplus and vice versa. It
determines whether a country is experiencing surplus in I
iii)Exchange rate: rate at which a country’s currency exchanges
with another. This rate determines the value of exports and
imports/ shows its indication of a country’s economic strength.
v)Balance trade: the difference between the value of a country’s
visible tangible imports and its value of exports is higher than
imports.
vi)Determines whether a country is experiencing surplus/ deficit
trade
v)Common market: an agreement between countries that allow
free movement of goods and factors of production. This allows
mobilization of resources/ trade without restriction
Githiari answered the question on September 22, 2017 at 20:05
- Outline five transactions which are recorded in balance of payment account of a country(Solved)
Outline five transactions which are recorded in balance of payment account of a country
Date posted: September 22, 2017. Answers (1)
- Country X has recorded a surplus balance of payments from its foreign trade. Outline four
ways in which the country can spend these surplus earnings(Solved)
Country X has recorded a surplus balance of payments from its foreign trade. Outline four
ways in which the country can spend these surplus earnings
Date posted: September 22, 2017. Answers (1)
- State three functions of departments of international trade in the ministry of commerce and industry(Solved)
State three functions of departments of international trade in the ministry of commerce and industry
Date posted: September 22, 2017. Answers (1)
- Explain the following terms as used in international trade (a) LOCO (b) F.O.R (c) F.A.S (d) Bill of Landing (e) Cost Insurance and Freight(Solved)
Explain the following terms as used in international trade
a. LOCO
b. F.O.R
c. F.A.S
d. Bill of Landing
e.Cost Insurance and Freight
Date posted: September 22, 2017. Answers (1)
- Outline four circumstances under which a proforma invoice may be used(Solved)
Outline four circumstances under which a proforma invoice may be used
Date posted: September 22, 2017. Answers (1)
- Highlights four problems a country by participating in international trade(Solved)
Highlights four problems a country by participating in international trade
Date posted: September 22, 2017. Answers (1)
- State the business document to which each of the following statements relates (a) Informs the buyer when goods were dispatched and by what means(Solved)
state the business document to which each of the following statements relates
A. Informs the buyer when goods were dispatched and by what means
B. A request by seller for payment in advance
C. Used to correct under undercharge in an invoice
D. Shows details of the transactions between seller and buyer during a
given period
Date posted: September 22, 2017. Answers (1)
- State four factors that may limit the success of trade agreements among African countries(Solved)
State four factors that may limit the success of trade agreements among African countries
Date posted: September 22, 2017. Answers (1)
- State four measures that Kenya may take to promote her exports(Solved)
State four measures that Kenya may take to promote her exports
Date posted: September 22, 2017. Answers (1)
- State four methods of controlling imports(Solved)
State four methods of controlling imports
Date posted: September 22, 2017. Answers (1)
- State four benefits that a country may derive from participating in international trade(Solved)
State four benefits that a country may derive from participating in international trade
Date posted: September 22, 2017. Answers (1)
- Give four reasons why it may be necessary for a country to control imports(Solved)
Give four reasons why it may be necessary for a country to control imports
Date posted: September 22, 2017. Answers (1)
- Outline four benefits that Kenya derives by being a member of Preferential Trade Area PTA(Solved)
Outline four benefits that Kenya derives by being a member of preferential Trade Area PTA
Date posted: September 22, 2017. Answers (1)
- Explain service offered to commercial banks by the central bank of Kenya(Solved)
Explain service offered to commercial banks by the central bank of Kenya
Date posted: September 22, 2017. Answers (1)
- Outline five reasons why banks current account is popular with traders(Solved)
Outline five reasons why banks current account is popular with traders
Date posted: September 22, 2017. Answers (1)
- Explain four ways in which the insurance industry promotes the growth of business enterprises(Solved)
Explain four ways in which the insurance industry promotes the growth of business enterprises.
Date posted: September 21, 2017. Answers (1)
- State four banking services that the central bank of Kenya provides to the government(Solved)
State four banking services that the central bank of Kenya provides to the government
Date posted: September 21, 2017. Answers (1)
- Highlight four reasons why loans advanced by commercial bank in Kenya may not appeal to
many people(Solved)
Highlight four reasons why loans advanced by commercial bank in Kenya may not appeal to
many people
Date posted: September 21, 2017. Answers (1)
- list four functions of development(Solved)
list four functions of development
Date posted: September 21, 2017. Answers (1)
- state four methods that central bank may use to control credit(Solved)
state four methods that central bank may use to control credit
Date posted: September 21, 2017. Answers (1)