Commerce Paper 2 Discussion

[KarachiRocker]

Hey guys !

How was your commerce paper ?
Mine went awesome and It was pretty easy aswell.

 

[Jazim]

Seriously the paper was extremely easy I did Q 1 2 4 6 nd u???

 

[KarachiRocker]

I did 3,5,6 and 8.

 

[Shahnam]

the paper was nice.. but suprisingly i spent whole two hours to do it. i did 1,3,4,6
just dont get the part that was Vunjay Singh a sole trader or just a small business owner.?? :S

 

[KarachiRocker]

@Shahman What was the interest rate to be paid ? I am talking about question 3 ? and what kind of risks arise by making purchases using credit card ?

 

[ahsan99]

the paper was nice.. but suprisingly i spent whole two hours to do it. i did 1,3,4,6
just dont get the part that was Vunjay Singh a sole trader or just a small business owner.?? :S

Obviously he was a sole trader ..and not a small business owner (small businesses dont import)

 

[Shahnam]

@Shahman What was the interest rate to be paid ? I am talking about question 3 ? and what kind of risks arise by making purchases using credit card ?

I wrote the interest would be zero because he made the payment before the due date. And if payments are made within time no interest is applicable.

Risks of using Credit Cards:
fraudlent transactions.
misuse of information
over committment due to over purchasing and interst payments

 

[KarachiRocker]

@Shahnam. Yay ! I wrote the same points

 

[ahsan99]

@Shahnam. Yay ! I wrote the same points

what ans did u people write to the qtn that asked for the difficulties in importing the bicycles (6)
How will trade help satisfy consumer needs and wants. HOw far do you agree to this (6)
shud factories get fire insurance (6)

cum on people....we need discussion over these qtns as they carried highest marks

Shahnam i need your answer.

 

[harris019]

i did q 2 4 5 8 easy ppr

 

[Taha Tehseen]

I forgot 2 answer two questions of total 10 marks...

 

[Shahnam]

@Shahnam. Yay ! I wrote the same points

what ans did u people write to the qtn that asked for the difficulties in importing the bicycles (6)
How will trade help satisfy consumer needs and wants. HOw far do you agree to this (6)
shud factories get fire insurance (6)

cum on people....we need discussion over these qtns as they carried highest marks

Shahnam i need your answer.

Problems of importing:
1. alot of documentation is required e.g. counciler invoice, bill of laden, etc.
2. the products might get damaged
3. the packing would temper as the customs might check each bicyle
4. taxes might have to be paid which would in result raise prices of bicyle
5. standards set by the country will have to be met.
Conclusion: however, if the benefits of importing the bicyle are greater then the costs incurred in importing them then Vinjay should import them and carry out effect pricing in respect to PED.

----------------------------------------------------------
Q. Does trade satisfy.... wants.?

comment: "we had to mention the economic problem of scarcity i.e. limited resources but unlimited human needs and wants."

Ans: Points in favour:
a. specialization provides better quality of goods and services
b. wider choice to choose commodities from
Points against
a. unlimited wants,
b. different people have different priorities
Conclusion: businesses trading try to satisfy human needs and wants but as they are unending, therefore trade has not been able to fully do so.

 

[Shahnam]

and duh! factories need to get the insurance done..
a. stakeholders.
b. safety measure
c. insurable interest
d. reduces the cost of damage

 

[Shahnam]

hey ahsan.. what were your points?? mine got a bit stale in the end though,, i'm worried.. :s

 

[ahsan99]

hey ahsan.. what were your points?? mine got a bit stale in the end though,, i'm worried.. :s

for the bicycle one ..my ans included the following points

- increased paper work..so greater clerical work so greater administration costs
- due to political instability , riots..there may be delays- unreliable supplies
- govt may impose quotos so price may rise ..so will have to offer higher prices meaning uncompetitive prices..so lose market share
- changing exchanging rate- if it falls ,likely to get less bicycles
- also bulky goods ..so likely to have high transportation costs
- also language problems..communication may suffer
- greater distance...may get damaged

For the insurance..my answer covered two aspects...
one
-buildings may be of high value
-buildings may have explosives ..energy resources
-construction materials may inc wood
-buildings may be close to oil factory
so high risk of fire
Insurance will help spread the risk among a large no of people
-so will give it financial protection
-compensation when claim is made
-reduce fincancial loses by asking factories to install devices eg fire extinguishers
-will give business confidence
-will not go out of the business so will keep their morale high..hence greater productivity

and as for Needs and wants my answer included points
- Trade moves goods from where they are in surplus to where they are in shortage..wider choice of goods
- may import raw materials and so goods can be produced in manufacturing ind
- foreign exchange earned and so can fund basic necessities of life...higher std of living
-also greater employment..so higher incomes of people so can satisfy wants to make life more pleasant
- also govt will get more revenue via taxation

However
- may get into debt ..trade deficit.....and negatives etc etc

i wrote 2/3 more esp in last qtn..but cudnt remeber
Shahnam insurable interest has got nothing to do with it...because its a principal of insurance.? do u think and please check my answer ..how do u rate it.

 

[Shahnam]

for insurable interest,
I think they should get insured because they had insurable interest and this principle allows them to get insurance cover. I don;t think this is wrong but it might not very much applicable in this situation. Lets hope for the best!

I think the your answers are well thought out. And should be yielding you good marks here.
You have been able to cover nearly all aspects in the IMPORTING OF BICYCLE question; cost, admin, government, international.
For INSURANCE part: in first part the assumptions made are a bit point of concern. The answer normally should with respect to the information given or the basic things that are always there to happen. But the energy resourece and high value points seem to be in line. For part b. I think it was pretty nice. The mention of stakeholders and how would it affect them was answered well.

Trade:
Points mentioning the higher incomes, wider choice of goods and services, and improvment in the standards of living seem very much in line to me. I guess others should have been written in argument against it. Because the tax would cause disposable income to fall and hence less left to spend,
and the "importing raw material..." i didnot really get what you really mean here.

The points look very good to me. It also largely depends on how well you developed these and how well was the flow of the answer written.

Wishing you all the best!

 

[ahsan99]

for insurable interest,
I think they should get insured because they had insurable interest and this principle allows them to get insurance cover. I don;t think this is wrong but it might not very much applicable in this situation. Lets hope for the best!

I think the your answers are well thought out. And should be yielding you good marks here.
You have been able to cover nearly all aspects in the IMPORTING OF BICYCLE question; cost, admin, government, international.
For INSURANCE part: in first part the assumptions made are a bit point of concern. The answer normally should with respect to the information given or the basic things that are always there to happen. But the energy resourece and high value points seem to be in line. For part b. I think it was pretty nice. The mention of stakeholders and how would it affect them was answered well.

Trade:
Points mentioning the higher incomes, wider choice of goods and services, and improvment in the standards of living seem very much in line to me. I guess others should have been written in argument against it. Because the tax would cause disposable income to fall and hence less left to spend,
and the "importing raw material..." i didnot really get what you really mean here.

The points look very good to me. It also largely depends on how well you developed these and how well was the flow of the answer written.

Wishing you all the best!

Actually u see ..countries specialise , they usually donot produce every thing locals want and need..so they need to import..and obviously raw materials are imported too ..and can be used to produce manufactured goods..so can fullfil needs and wants
and for insurance..although they are assumptions but actually they lead to high risks .and secondly as for as insurable interest is concerned..u defined it like " the insurer must have direct or financial interest in every thing he insures" and see, according to this one factory can not get a insurance cover of another factory..and i dont think its relevant because insurance company will decide whether he has insurable interest or not...khair u may be right..inshAllah
and actually u see taxes are only applied when imports are made..exports will earn greater f.e ...the factories will obv be earning revenue and so aggregate output wud be increasing..and so higher revenue means higher taxes for the govt ..i also wrote negatives abt importing more .and taxes reducing income..country in debt etc
khair hope for the best

 

[Hadi]

I attempted 1,2,7,8!
7 was the easiest of them all yet I see alot of people didn't attempt it. Very strange indeed!

 

[ahsan99]

I attempted 1,2,7,8!
7 was the easiest of them all yet I see alot of people didn't attempt it. Very strange indeed!

What answers did you write to the qtn i wrote above?