A commercial enterprise based in Ibadan purchases raw cashew nuts in bulk from farmers in Oyo State. It sells a portion of the bulk purchase to local processing firms in Ogun State and ships the remaining quantity to a food processing company in Vietnam. Within the classification of trade, how is the transaction involving the shipment of cashew nuts to Vietnam classified?
- AWholesale home trade, because the commodities were purchased in bulk directly from domestic agricultural producers.
- Export trade, which is a branch of foreign trade involving the sale of domestically produced goods to another country.Cevap
- CEntrepôt trade, because the enterprise stored and re-handled the produce before sending it abroad.
- DAn auxiliary to trade, because physical redistribution of raw materials serves as a commercial support service to industry.
Cevap
Export trade, which is a branch of foreign trade involving the sale of domestically produced goods to another country.
The correct answer identifies the transaction as export trade because selling goods produced or sourced in one country to buyers in another country falls under export trade, which is a subdivision of foreign trade.
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Classification of Foreign Trade (Export Trade)
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