Assignment 750 – 1000 Words Using Harvard Reference System After you have learned in this seminar about the sales process in a trading company, please discuss in your assignment paper the following situation. You are a paper and packaging trader have a customer (a box plant) in Thailand. He orders with you carton board from Europe (sales value 150.000 USD) to produce boxes. For storage / production reasons on his side, he asks you to split the shipment in two consignments (50-50) and to have a gap in arrival of the goods of approx 3 weeks. You are now in your final stage of your negotiations with both – your supplier in Europe and your customer in Thailand. The transport from Europe to Thailand will be organized by your usual forwarder – he just needs to know from you the incoterms he is dealing with. The current economic situation is hard to predict – within the next couple of weeks, the prices for carton board could increase by 10% or could also decrease by 10%. However, you have to close the purchasing order as well as the sales order today, since otherwise you will loose the necessary production slot at your supplier to supply in time and your customer in Thailand will place the order with your competitor. Please discuss in your paper the following incoterms options you have with your supplier as well as with your customer to agree on. Describe the pros and cons and decide for in your opinion the best incoterm as well as the best payment term with your client. Please think also about, what is your most desired payment term with your supplier? The usual incoterms from your supplier side are: FOB, FCA (Antwerp) and EXW. On customer side, possible incoterms are CIF, CFR, DDP, DDU Payment terms: CAD, L/C (Letter of credit), open credit terms, cash in advance, part-payments After weighing up the pros and cons in your paper, please give in your opinion the best solution: Purchase side – Incoterm and payment term Sales side – Incoterm and payment term
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