An importer placed an order with a price as USD 100 M/T FOBD2% Shanghai. The exporter counter-offered the price as 120 CFRD1% New York. Supposed the freight costs was USD 20 M/T. Should the importer agree with the new trade term and discount, if he will keep his expected profit margin ?

An importer placed an order with a price as USD 100 M/T FOBD2% Shanghai. The exporter counter-offered the price as 120 CFRD1% New York. Supposed the freight costs was USD 20 M/T. Should the importer agree with the new trade term and discount, if he will keep his expected profit margin ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An importer placed an order with a price as USD 100
M/T FOBD2% Shanghai. The exporter counter-offered
the price as 120 CFRD1% New York. Supposed the
freight costs was USD 20 M/T. Should the importer
agree with the new trade term and discount, if he will
keep his expected profit margin ?

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