Terms of Sale

It is critical that a buyer and seller understand the terms of sale when negotiating an international shipment.
The sales price is only one part of the total cost of getting the product at your warehouse. For example, if you
negotiate the price for a product with the term EXW, then you the buyer will be responsible to make
arrangements to have the product picked up from the seller, shipped to the port, loaded on board the ship,
maritime insurance, offloading and custom clearance and then final shipment to your facility. As you can see,
this can be very expensive.
Discuss:
For this discussion, pick one of the 11 IncoTerms. Define the term and provide a detailed analysis of the cost
involved and at what point the responsibility for the shipment changes from the buyer to the seller.
Course Textbook:
Contemporary Logistics
Edition:12th Edition
Year:2018
ISBN:978-0134520506 (eBook), 978-0134519258 (Print)
Author:Paul R. Murphy, Jr., A. Michael Knemeyer
Publisher:Pearson

Sample Solution

Business Ethics

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