Commerce Questions and Answers

Ad valorem; (is the levying of tax or customs duties) proportionate to the estimated value of the goods or transaction concerned. They extend to taxes such as import duty taxes on goods from abroad. 

The main purpose of a consular invoice is to provide a complete and detailed description of the goods to the foreign customs authority, so as to ensure that the correct import duty is levied on the goods.

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition.

The general rule regarding contracting with minors or infants is that such a contract is voidable by the minor. This rule has been established to protect younger individuals who may not fully grasp the consequences of certain contracts. Minors are believed to lack the capacity to contract.

A closed indent restricts the agent to a named manufacturer from whom the goods must be bought while an open indent gives the agent a free hand in obtaining the goods from any source

In other words, an open indent is an order to an overseas purchasing agent to buy certain goods, without specifying the manufacturer. If the manufacturer is specified this is a closed indent

marketing mix; is simply a combination of factors such as product, price, promotion and place that can be controlled by a company to influence consumers to purchase its products