Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The customer is importing electronic goods from Argentina to Namibia, having a value of NS10 000.00. He will also pay a freight cost NS 2000.00

The customer is importing electronic goods from Argentina to Namibia, having a value of NS10 000.00. He will also pay a freight cost NS 2000.00 to bring the goods from Argentina to Windhoek, Namibia. According to the Harmonised System, this transaction attracts the custom duties of 30%. The import tax currently charged by Namibia is 16.5%.

a) Calculate the total cost of this transaction?

b) The customer just realised that South Africa is offering the same electronic goods that the he wants to import to Namibia at the value of NS 16 000.00, and the transaction has incoterm DDP. Calculate the savings or extra costs to be incurred if the customer decides to buy goods from South Africa?

c) Advice on which supplier should be considered by the customer based on the information provided above?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Business Today

Authors: Charles Hill

9th Edition

1259299201, 9781259299209

More Books

Students also viewed these Economics questions

Question

Behaviour: What am I doing?

Answered: 1 week ago