(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) Stat...

(a) What is Entrepot Trade?

Entrepot trade (re-export trade) is the importation of goods from one country for the purpose of re-exporting them to another country, either in their original form or after some processing or repackaging. The goods are not consumed in the importing country; it merely serves as a warehouse or transit point.

(bi) Difference between a Bill of Lading and a Consignment Note

A Bill of Lading is a document used in sea (foreign) transport. It is a receipt for goods shipped, evidence of the contract of carriage, and above all a document of title to the goods, so it can be transferred to give ownership. A Consignment Note is used in inland transport (road or rail). It is a receipt and instruction for the carriage of goods but is not a document of title, so it cannot transfer ownership of the goods.

(bii) Use of Bill of Sight in foreign trade

A bill of sight is used by an importer who does not have full details of goods he is expecting. It allows the goods to be landed and inspected in the presence of a customs officer so that their exact nature and quantity can be established before the correct import duty is assessed and paid.

(c) Five reasons for the criticism against Advertising

1. It increases the cost of goods, since advertising expenses are passed on to consumers.
2. It can be misleading or deceptive, exaggerating the qualities of products.
3. It encourages wasteful and impulse spending on goods people do not really need.
4. Some advertisements are offensive or corrupt morals, especially of the young.
5. It may promote monopoly, as large firms that can afford heavy advertising drive out small competitors.