FF Ltd is a food processing company in India. It has received a $30 million export order for canned meat from a new customer in the United States.
- (a)Explain what is meant by an export order.[2]
- (b)Describe how FF Ltd will contribute to India's Balance of Trade.[2]
- (c)Explain the effect on FF Ltd if the United States introduces import quotas on canned meat from India.[2]
- (d)FF Ltd is experiencing a delay with the delivery of this export order and needs to communicate with the customer. Evaluate whether FF Ltd should use written or oral communication to communicate with the customer. Discuss both options. Which option do you recommend? Give reasons for your answer.[8]
Mark scheme
Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.
- [1] A document of international trade acts as a request/order made by the importer/buyer in one/foreign country/another country
- [1] to buy/order/import goods from another/different country
- [1] FF Ltd is exporting more goods to United States/adding to the total exported goods/visible goods of the country/increasing exports/by $30 million/more foreign exchange
- [1] India has a balance of trade surplus/favourable/positive/improves balance of trade
- [1] Quotas place a limit on the number/volume of imported canned meat from India
- [1] reduces the quantity of goods that FF Ltd can export/import into United States/leading to less revenue/sales/profits for FF Ltd/less dumping of goods on the United States market by FF Ltd
- [1] Oral communication is two-way communication/face-to-face/directly speaking/telephoning or talking to someone
- [1] Written communication may be handwritten, typed, printed or electronically generated such as letters and email.
- [1] FF Ltd can have a discussion with the importer so that any points not understood can be clarified
- [1] There is direct contact so less confusion
- [1] It can give immediate impact/feedback so that a decision on the delivery issue can be reached quickly
- [1] It is interactive so is likely to be more effective for both parties
- [1] Body language can be observed helping to show person's feelings
- [1] There is no written record so agreed points may be misheard or misunderstood
- [1] The communication may be poorly organised leading to confusion
- [1] There may be network problems leading to delays
- [1] Potential language differences leading to less understanding
- [1] A written record is kept that both parties so useful for future reference if there is an error so less chance of misunderstanding
- [1] It allows time for planning a response to the delivery problem so that appropriate feedback can be given
- [1] Multiple copies can be sent to several people so making it cost-effective
- [1] Less possibility of information being distorted so fewer chances of misunderstandings/disputes
- [1] Instant feedback is not usually possible so delaying response to problem
- [1] There is more time to prepare/deliver message so there may be delay in replying
- [1] Emails can go into junk folder so delaying communication
- Evaluation: It is not known whether the delivery issue is urgent but if so, it is recommended that they use a method of oral communication, such as telephone, to gain immediate contact. If not quite so urgent, a written communication method, such as an email, might be used so a written record is created. A written form would be best when there is a problem so there cannot be any later confusion/disagreement.
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