International purchasing November 2018 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) The purchasing manager of Mgabe Limited intends to procure some materials from international sources. Explain the problems that the manager may encounter from this move. (10 marks)
(b) As a newly employed procurement officer, you are seeking information pertaining the potential overseas suppliers. Describe the possible sources of such information. (10 marks)
2. (a) Explain the role that a freight forwarder is expected to play in facilitating international purchasing for a client. (10 marks)
(b) Many organizations are increasingly engaging in futures dealing. Explain the conditions that must exist for such dealings to be undertaken successfully. (10 marks)
3.(a) Outline the aspects of cultural practice that a purchasing officer should consider when buying from international sources. (10 marks)
(b) A purchasing officer would always seek to get the best prices in his negotiations with international sellers. Explain the ways in which such an officer may achieve this objective. (10 marks)
4.(a) Many countries form regional trading blocs to facilitate trade among themselves.
Explain the benefits that may accrue to the countries from such a move. (10 marks)
(b) Explain the reasons that may account for exchange rate volatility in international purchasing. (10 marks)
5. (a) Outline the functions that a Bill of Lading plays in international purchasing. (10 marks)
(b) Explain the changes in the business environment that may lead an organization to source for its supplies from overseas markets. (10 marks)
6. (a) Explain the role of International Chamber of Commerce (ICC) in the regulation of international purchasing operations. (10 marks)
(b) Online payments are becoming an increasingly common feature in international purchasing, Highlight the problems that may be encountered when using this method of payment. (10 marks)
7. (a) Highlight the risks that a logistics company may be exposed to when shipping goods from one continent to another. (10 marks)
(b) Explain the factors that a purchasing officer should consider in choosing the method of payment to use for international purchases. (10 marks)
