Scribd
Upload
326 views2 pages

Foreign Trade Notes for ZIMSEC Students

Foreign trade, or international trade, involves the buying and selling of goods and services between countries, categorized into import, export, and re-export trade. It is important for accessing goods not produced locally, earning foreign currency, and fostering international relationships. Barriers to foreign trade include tariffs, quotas, and exchange rate controls, and various documents like bills of lading and invoices are used in the process.

Uploaded by

lloydnyoni97
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
326 views2 pages

Foreign Trade Notes for ZIMSEC Students

Foreign trade, or international trade, involves the buying and selling of goods and services between countries, categorized into import, export, and re-export trade. It is important for accessing goods not produced locally, earning foreign currency, and fostering international relationships. Barriers to foreign trade include tariffs, quotas, and exchange rate controls, and various documents like bills of lading and invoices are used in the process.

Uploaded by

lloydnyoni97
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Here are simplified notes on FOREIGN TRADE for ZIMSEC Commerce students:

✅ FOREIGN TRADE
➡️Definition

Foreign trade is the buying and selling of goods and services between different countries.
It is also called International Trade.

✅ Types of Foreign Trade


1. Import Trade
o Buying goods and services from other countries.
o Example: Zimbabwe importing cars from Japan.

2. Export Trade
o Selling goods and services to other countries.
o Example: Zimbabwe exporting tobacco to China.

3. Re-Export Trade (Entrepot Trade)


o Importing goods and then exporting them without significant
processing.
o Example: South Africa importing electronics and exporting
them to neighbouring countries.

✅ Importance of Foreign Trade


 Provides access to goods not produced locally.
 Enables countries to earn foreign currency through exports.
 Promotes international relationships and cooperation.
 Enhances specialisation in the production of certain goods.
 Encourages the exchange of technology and skills.

✅ Differences Between Home Trade and Foreign Trade


Home Trade Foreign Trade

Within the same


Between different countries
country

Uses local currency Involves foreign currency


Home Trade Foreign Trade

Involves many formalities like


Few formalities
customs

Includes tariffs and import


No tariffs or duties
duties

✅ Barriers to Foreign Trade


1. Tariffs – Taxes on imported goods.
2. Quotas – Limits on the quantity of imports.
3. Import Licences – Permits required to import certain goods.
4. Exchange Rate Controls – Restrictions on buying foreign currency.
5. Trade Embargoes – Bans on trade with certain countries.

✅ Documents Used in Foreign Trade


 Bill of Lading – Proof of goods shipped.
 Invoice – A bill showing the price and quantity of goods.
 Certificate of Origin – Shows where the goods were made.
 Insurance Certificate – Covers goods against risks during transit.

✅ Exercise Questions
1. Define foreign trade.
2. List and explain the three types of foreign trade.
3. State three differences between home trade and foreign trade.
4. Mention three barriers to foreign trade.
5. Name two documents used in foreign trade and their purposes.

Let me know if you'd like these notes in PDF format or with sample answers!

You might also like