Commerce Paper 2, May/June 2011  
Questions: 1 2 3 4 5 6 7 8 9 10 Main
General Comments

question 3

  • What is channel of distribution?
  • With the aid of diagrams show four examples of channels of distribution.
  • Explain five advantages of home trade.


The performance of the candidates in this question was good. They were able to define channel of distribution and diagrammatically illustrated the various channels used in distribution of goods. However in part (b) of the question candidates failed to state the following points:

  1. Less documentation are needed in home trade as compared with the foreign trade.
  2. Less risk is involved in home trade, hence insurance for goods is optional.
  3. Government regulations and policies are the same in home trade but differs in foreign trade.
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