Supply chain 4

Incoterms are intended to clearly communicate:

• • Which country is falling under dumping

• • Risks associated with ocean transportation

• • Who pays to whom and the exchange rate used

• • Tasks, costs, and risks associated with the transportation and the delivery of goods

Calculate the CIF and DDP price in € for Carrefour Morocco assuming same FOB price for both countries (1.1€ per unit). An insurance of 1%, Ocean transportation of 150€ (for either

1-4 pallets) an import duty of 2%, customs of 220 MAD per import and a local transportation of 450 MAD per trip. IEUR = 11MAD The exchange rate is of 11.0 MAD/€ TOTAL UNITS: 600 600 units 1.1€ = 660€ 1.01= 666.6€ + 150€ = 816.6€ *1.02 = 832.9€ + (220/11) =

832.9+20= 852.9 + (450 11) = 852.9+ 40.9 = 893.8€

Which Incoterms might have a better fit for a company (buyer) with short term cash flow issues?

• C's

• E&F's

• D'S

• F&C's

Key factors that drive the use of the most appropriate INCOTERM

• Company policies, bargaining position, value of goods, legal and financial restrictions

• • Leverage Position, Industry standards, contract length and lower import duties

• • Profit margin of the product imported, legal restrictions, interest rates, mode of transportation

• • All of the above

Which entity publishes the Incoterms?

• • ICC

• • WTO

• • WCIT

• • TARIC