international trade Archives - Free ZIMSEC & Cambridge Revision Notes

Differences between Home and International trade

By garikaib|2022-09-15T12:42:39+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

image credit iccwbo.org ZIMSEC O Level Commerce Notes: Differences between Home and International trade

Home trade is buying is the buying and selling of goods and services between people within a country’s borders ( Zimbabwe).
International trade involves the buying and selling of goods between people in one […]

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Indent document

By garikaib|2022-09-15T12:42:32+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Image credit gotomyies.com ZIMSEC O Level Commerce Notes: Indent document

Indent

An order to buy goods abroad.
Sent by an importer (principal) to an agent overseas.
Gives details of:
types, quantities and prices of goods required.
How the goods are to be forwarded.
Marking or numbers on crates […]

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Visible and Invisible trade

By garikaib|2022-09-15T12:42:38+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Visible Trade. Image credit Maltatoday.com ZIMSEC O Level Commerce Notes:Visible and Invisible trade

Invisible trade

Trade in services only e.g. tourism, freight, insurance.
Calculated for given periods of time, usually one year.
Invisible balance= exported services value-minus imported services value.
For example Tourists coming to Zimbabwe $25 million.
Banking services provided […]

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Export invoice

By garikaib|2022-09-15T12:42:31+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Image credit DHL. ZIMSEC O Level Commerce Notes: Export Invoice

Export invoices

Prepared from various invoices for goods purchased and expenses incurred (on transportation and warehousing of goods)
Summarises the goods bought and expenses incurred.
Copies of the original invoices received from suppliers of goods and services are attached to the […]

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Difficulties faced by importers and exporters

By garikaib|2022-09-15T12:42:38+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

The dreaded Somali Pirates. Image credit slate.com ZIMSEC O Level Commerce Notes: Difficulties faced by importers and exporters

Different languages
Language is a barrier in international trade because it leads to communication problems.
There is a need to translate information or instructions from one language to […]

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Consular invoice

By garikaib|2022-09-15T12:42:31+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Image credit jaicourtney.net ZIMSEC O Level Commerce Notes: Consular invoice

Consular invoice

Assist customs officials to calculate customs duty where duty is charged on the value of imported goods.
Signed by a consul of the importing country certifying and confirming that the prices of the goods are correct:
prices of the […]

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Balance of Payments

By garikaib|2022-09-15T12:42:37+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Balance of payments. Image credit therecordingrevolution.com ZIMSEC O Level Commerce Notes: Balance of Payments (B.O.P)

Balance of payments (B.O.P)

This is the difference between Zimbabwe’s total earnings (receipts) and total expenditure.
Exported goods and services less imported goods and services.
It is calculated for a given year.
When the […]

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Certificate of origin

By garikaib|2022-09-15T12:42:30+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Image credit kkfreight.com ZIMSEC O Level Commerce Notes: Certificate of Origin

Certificate of origin

Specifies the name of the country which goods being exported have been manufactured e.g. Made in China.
Required for the assessment of amount of duty to be charged on imports from the country of origin.
Required when customs […]

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Methods used to correct an unfavourable Balance of Payment

By garikaib|2022-09-15T12:42:37+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

South African border post. Image credit drivesouthafrica.co.za ZIMSEC O Level Commerce Notes: Methods used to correct an unfavourable Balance of Payment

Methods and ways of correcting an unfavourable balance of payments.

The government of Zimbabwe may use the following ways to correct its BOP if its unfavourable […]

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Certificate of insurance

By garikaib|2022-09-15T12:42:30+02:00January 24th, 2023|Notes, O Level Commerce Notes, Ordinary Level Notes|

Image credit generalmills.com ZIMSEC O Level Commerce Notes: Certificate of insurance

Certificate of insurance

Provides proof that the goods being transported have been insured.
Has to be produced when making a claim to the insurance company, if a risk insured against has occurred.
Can be an open (floating) insurance policy.
To cove […]

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January 2023