W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2014/2015
END OF SEMESTER EXAMINATION FOR THE
DIPLOMA IN PURCHASING AND SUPPLY MANAGEMENT
HEP 0203: INTERNATIONAL PURCHASING
DATE: AUGUST 2014 TIME: 1½ HOURS
INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS
Question One (30 Marks)
a) Discuss five reasons why organizations may decide to buy from international markets. (10 Marks)
b) (i) Define international purchasing. (2 Marks)
(ii) Define the term counter trade. (2 Marks)
(iii) Discuss three advantages of counter trade. (6 Marks)
c) Discuss three disadvantages of international processing. (10 Marks)
Question Two (15 Marks)
a) Explain three factors that may hinder/affect international trade. (9 Marks)
b) Discuss three documents which must be stipulated in a letter of credit if its used for payment in international purchasing. (6 Marks)
Question Three (15 Marks)
a) International purchasing is made easier using intermediaries. Discuss four types of intermediaries which can be used to complete transactions in international purchasing. (8 Marks)
b) Explain the roles of a Purchasing Manager in international purchasing. (7 Marks)
Question Four (15 Marks)
a) Discuss three roles of international chamber of commerce. (6 Marks)
b) Explain three trends in the international trade today. (9 Marks)
