International purchasing July 2016 Past Examination Question Paper – KNEC
This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following courses:
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THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN SUPPLY CHAIN MANAGEMENT
MODULE III
BUSINESS EDUCATION SINGLE AND GROUP CERTIFICATE EXAMINATIONS
INTERNATIONAL PURCHASING
July 2016
Time: 3 hours
1. a) Explain six challenges facing international purchasing. (12 marks)
(b) Explain the following documents used in international trade.
(i) Performance bond
(ii) Carriage paid to
(iii) Free-on-board
(iv) Cost Insurance Freight
2. (a) Describe five indicators of fraud in international purchasing.
(b) Explain five factors that may influence the method of payment in an international purchasing contract. (10 marks)
3. (a) Describe the current trends in global procurement that should be of concern to international procurement officers. (10 marks)
(b) Explain five reasons why producer cartels grow in international trade. (10 marks)
4. (a) Discuss five roles of regional economic blocs in international purchasing. (10 marks)
(b) Explain five procedures used in specifying materials requirements in international purchasing. (10 marks)
5. (a) Kavu Company Limited is involved in a dispute with an overseas supplier. Explain five methods which the Company can use to settle the dispute. (10 marks)
(b) Explain five roles of International Organisation for Standardisation (ISO) in procurement management. (10 marks)
6. (a) Outline any four differences between global sourcing and international sourcing. (8 marks)
(b) Describe six features of an effective commodity market. (12 marks)
7. (a) Explain five advantages of globalization in purchasing. (10 marks)
(b) Discuss five roles of the World Trade Organisation (WTO) in international purchasing management. (10 marks)
