(a) What is Entrepot Trade?
(bi)Differentiate between a Bill of Lading and Consignment Note
(bii) Explain the use of bill of sight in foreign trade
(c) State five reasons for the criticism against Advertising
Explanation
a) Entrepot trade is the importation of goods into a country with the intention of re-exporting them to other countries
b) i) A bill of lading is a contract between the exporter and the shipowner for the carriage of goods to their destination while a consignment note is a contract of domestic carriage of goods when the seller uses an independent carrier.
ii) The purpose of a bill of sight is to enable customs officers to carry out the inspection and valuation of goods when the bill of lading has not yet arrived.
c) i) It increases the cost of marketing products and thus the price of the products
ii) Certain advertisements mislead customers through false or exaggerated statements about the products
iiI) persuasive advertising induces customers to buy what they do not really need.
iv) Certain advertisements by big companies aim at driving away small firms from the business.
v) Advertisements of certain products encourage customers to use harmful products
vi) Advertisement may create false personality images and moral exploitation of the youth/Advertisement could be harmful to the society because of the use of decent language and improper dress
vii) Successful advertisement will lead to monopoly.