Observation

Candidates who attempted this question performed well.  

The responses expected from candidates are:

(a)Terms used in international trade
(i) Terms of trade; it is the rate at which the exports of a country exchange for its imports.
(ii) Balance of payment; it is the relationship between the total receipts of a country’s  (visible and invisible) and the total payments made to other countries for (visible and invisible).                                                                                           
                        
(b) Documents Mr Ayo would use in international trade
(i.) Consular invoice; It is an invoice signed by the consular of the country to which the goods are to be consigned. It will ensure correct payment of custom duties at the importers country.

(ii) Bill of lading; It is a contract of carriage of goods between the exporter and the shipping company to carry the goods to the port of destination. It is a document of title.
(iii) Certificate of origin; It is a document signed by a custom officer of the exporting country to show the country from where the goods originated from.  
(iv) Shipping note; It is a document sent to the shipping agent by the exporter which contains instructions for transporting the goods.
(v) Ship manifests; It is a document to be completed by the captain of the ship and kept with the customs authorities before the ship can leave the sea port. It shows the particulars of the ship, its cargo and destination.
(vi) Indent; It is an order to buy goods conveyed by an importer to a potential supplier.
(vii) Bill of sight; It is a document submitted to the customs authorities when a full description of the imported goods cannot be provided.
(viii) Bill of exchange/promissory note; This is a document that contains an agreement signed by an importer to pay the exporter a certain sum of money on a specified future date.
(ix) Letter of credit; This is an undertaking given by the importer’s bank acting on the request of the importer that it would make payment to the exporter.
(x) Certificate of insurance; This is a document that serves as an evidence against damages, risks or losses for goods shipped by the importer.
(xi) Export invoice; This document is required to maintain a statistical measure of goods shipped abroad and confirm that appropriate regulations have been met.
(xii) Inspection certificate; This document is issued by an independent third party stating that the goods have been inspected and conform to quality specifications.
(xiii) Bill of entry; This is a document that shows the exact nature, quantity and value of goods imported or exported by an individual or organization.