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TFN820S-TRADE FINANCE-1ST OPP-NOV 2025 |
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nAm I 8 I A Un IVE RS ITV
OF SCIEnCE Ano TECHnDLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: POST GRADUATE DIPLOMA IN DEVELOPMENT FINANCE
QUALi FiCATION CODE: 08PGDD LEVEL: 8
COURSE CODE: TFN820S
COURSE NAME: TRADE FINANCE
SESSION: NOVEMBER 2025
PAPER: THEORY AND APPLICATIONS (PAPER 1)
DURATION: 3 HOURS
MARKS: 100
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINERS Lameck Odada
MODERATOR Prof Leward Jeke
INSTRUCTIONS
1. This question paper consists of FOUR (4) Questions.
2. Answer ALL the FOUR (4) questions in blue or black ink only. NO PENCIL and TIPEX
3. Start each question on a new page and number the answers correctly and clearly.
4. Write clearly and neatly and show all your formulas, workings , and assumptions.
5. Questions relating to this examination may be raised in the initial 30 minutes after the
start of the examination . Thereafter, candidates must use their initiative to address any
perceived errors or ambiguities, and any assumptions they make should be clearly
stated.
PERMISSIBLE MATE RIALS
1. Black or blue ink pen and a ruler
THIS QUESTION PAPER CONSISTS OF _3_ PAGES (including this front page)
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QUESTION 1
[25 MARKS]
International trade, while offering significant growth opportunities, exposes businesses to
various risks that can impact profitability and stability. Effective risk management is crucial
for businesses engaging in international trade, as it helps mitigate potential negative
consequences and ensures smooth operations.
REQUIRED
MARKS
Identify and discuss any five (5) risks in international trade. You are required to 25
provide your answers in a table format showing the type of risk, description,
example(s), and mitigation strategies
QUESTION 2
[25 MARKS]
International trade is the exchange of goods, services, and capital across international
borders. It is a fundamental part of the global economy, enabling countries to specialise in
production, access a wider variety of goods, and foster economic growth.
REQUIRED
MARKS
a) Identify any five (5) international trade theories
5
b) Critically evaluate any five (5) characteristics of international trade
10
c) Identify and discuss any five (5) barriers/difficulties in international trade
10
QUESTION 3
[25 MARKS]
To succeed in today's global marketplace and win sales against foreign competitors,
exporters must offer their customers attractive sales terms supported by the appropriate
payment methods. Because receiving payment in full and on time is the ultimate goal for
each export sale, a suitable payment method must be chosen carefully to minimize payment
risk while also accommodating the buyer's needs. The choice of method often depends on
the level of trust between the buyer and seller, the value of the transaction, and the level of
risk each party is willing to take.
REQUIRED
MARKS
a) Identify any FIVE (5) key factors determining the payment method.
5
b) Identify and describe any FIVE (5) payment methods in international trade.
20
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QUESTION 4
[25 MARKS]
lncoterms are International Commercial Terms, a set of standardised rules published by the
International Chamber of Commerce (ICC) that clarify the responsibilities, costs, and risks
between buyers and sellers in international and domestic sales contracts for goods. They
define who handles shipping, insurance, customs clearance, and risk transfer for goods,
promoting clear communication and preventing costly misunderstandings.
REQUIRED
Critically evaluate any FIVE (5) lncoterms in trade finance
MARKS
25
END OF EXAMINATION PAPER
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