O-LevelCommerceGlobal trade7100/12 · May/June 2016 · Q191 Mark

Which problem is faced by a firm selling imported goods rather than selling goods made by a local producer?

ACosts are always higher for imported goods.

BImported goods may be of better quality than locally produced goods.

CLess documentation is involved between the importer and the buyer.

DThe imported goods may have to be paid for in a foreign currency.

✓ Correct answer

D: The imported goods may have to be paid for in a foreign currency.

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Topic: Global trade, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2016 Paper 1 Variant 2, question 19.

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