INCOTERMS exercise
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Seneca College *
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365
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Industrial Engineering
Date
Jan 9, 2024
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docx
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Uploaded by ProfessorKnowledgeKomodoDragon40
Class Work Incoterms Scenarios and Export Price calculation - Cost plus method I.
INCOTERMS
2020
( 20 marks )
Use the scantron card to answer the following questions:
You have been recently employed by Best Buy, Toronto Canada as a junior Import Manager. You
have to import computers and TVs, from Nanjing Electronics Company, China. You are in charge of the negotiations with your supplier and also the logistics.
Shipping Instructions:
The goods are to be shipped in a 20” container from “Nanjing Electronics Co”. by “Nanjing Trucking” to the Port of Shanghai China, where they will be loaded on the ship for an ocean voyage to the Port of Seattle Washington U.S.A.
From the Port of Seattle Washington USA, the goods will be transported by “US Pacific Railway”, crossing the US-Canada Border, to a Mississauga ON warehouse.
From the Mississauga warehouse, the goods will be brought by “DHL Trucking” to the Best Buy Toronto warehouse.
BASED ON THE BELOW NEGOTIATIONS, YOU HAVE TO DECIDE WHICH IS THE MOST SUITABLE INCOTERM FOR EACH CIRCUMSTANCE.
1.
The buyer wants the exporter to deliver the goods to the Mississauga warehouse. The buyer will arrange for insurance
, and risk will be transferred when the goods are delivered to “Nanjing Trucking”. a)
CPT (Mississauga Warehouse) risk and cost are transferred at different locations
b)
CIP
c)
DDP
d)
DPU
e)
FCA
2.
The buyer wants the goods delivered beside the ship in the port of Shanghai China, where the
buyer
will accept all risks for the goods and pay for all transportation costs from the port of Shanghai China to the “Best Buy” Toronto warehouse.
a)
FOB
b)
FAS (port of Shanghai China) risk and cost are transferred at the same location c)
DPU
1
d)
DAP
e)
DDP
3.
The buyer wants the exporter to deliver the goods not insured to the Port of Seattle Washington. The buyer will assume all risks after the goods are loaded on the ship, in the port of Shanghai China. a)
CIF
b)
DPU
c)
CFR (port of Seattle) risk and cost are transferred at different locations
d)
DAPs
e)
FCA
4.
The buyer wants the goods delivered to “Nanjing Trucking” in Nanjing China. The buyer will accept risk for the goods once they are in possession of “Nanjing Trucking” and you will pay and make the necessary arrangements to bring them to “Best Buy’s” Toronto warehouse.
a)
CIF
b)
CPT
c)
CIP d)
FCA
e)
CFR
5.
The buyer wants the goods delivered by the exporter, insured to Mississauga ON Warehouse, but you will assume risk for them once they are given to “Nanjing Trucking” in Nanjing China.
a)
CIP (Mississauga Warehouse) risk and cost are transferred at different locations
b)
FCA
c)
FOB d)
DPU
e)
DAP
6.
The buyer wants the goods delivered loaded to Mississauga ON Warehouse, where the buyer will assume all costs and risks. You will pay for unloading and subsequent delivery
to Best Buy’s Toronto warehouse.
a)
CIF
b)
FCA
c)
DPU
d)
DAP e)
DDP 7.
The buyer wants the goods delivered to Best Buy’s Toronto warehouse, where you will assume risk for them. The exporter will account for goods to Custom and pay for duties.
a)
ExW
b)
FCA
c)
DPU
d)
DAP
2
e)
DDP (Best Buy Warehouse)
8.
The buyer wants the goods delivered loaded on the ship in the Port of Shanghai China. You will pay and take responsibility for the goods after they are loaded on the ship and make arrangements to bring them to the Best Buy Toronto warehouse.
a)
FOB
b)
DAT
c)
FCA
d)
DPU
e)
CFR
9.
The buyer will accept risk for the goods unloaded, at a deconsolidation warehouse at US Pacific Railway, USA from where you will arrange and pay for their delivery to the Best Buy Toronto warehouse.
a)
FOB
b)
CIF
c)
CFR
d)
DAP
e)
DPU (US Pacific Railway) unloaded
10.
The buyer wants the exporter to deliver the goods insured to Seattle Port, Washington USA. You will accept all risks as soon as they are loaded on the ship in the Port of Shanghai China. a)
FOB
b)
CPT
c)
CIF (to Seattle Port)
d)
DPU
e)
DAP
3
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