As a young entrepreneur in Gauteng you have been undertaking research on the internet and have discovered a niche in the market for home office productivity improvement products. You have contacted three suppliers in Hong Kong who have agreed to supply you with various of their products. You have placed an initial order on Supplier A for 10 cases, Supplier B 25 cases and Supplier C 35 cases. The suppliers have agreed to pack their various products into cardboard boxes with the following measurements: Length 600 mm; Width 300 mm and Height 745mm and an average weight of 10 kg per carton. The total value of the three orders totals R210,000 and you have, with the assistance of your family, arranged for the necessary finance. As the products are of a delicate nature, you have decided to consolidate and containerise the three orders and to ship by sea as to save cost and ensure save delivery. In implementing your first import transaction, you need to formulate your import logistics plan by detailing the following: QUESTION 1 Which Incoterm are you recommending and give the reasons why. QUESTION 2 Which type of payment will you negotiate with the sellers in Hong Kong? Discuss in detail. QUESTION 3 Choose and discuss the type of contract of carriage that would be appropriate for the shipment. QUESTION 4 Supply a detailed list, with a brief discussion of the documents required for this specific shipment.
As a young entrepreneur in Gauteng you have been undertaking research on the internet and have discovered a niche in the market for home office productivity improvement products. You have contacted three suppliers in Hong Kong who have agreed to supply you with various of their products. You have placed an initial order on Supplier A for 10 cases, Supplier B 25 cases and Supplier C 35 cases. The suppliers have agreed to pack their various products into cardboard boxes with the following measurements: Length 600 mm; Width 300 mm and Height 745mm and an average weight of 10 kg per carton. The total value of the three orders totals R210,000 and you have, with the assistance of your family, arranged for the necessary finance. As the products are of a delicate nature, you have decided to consolidate and containerise the three orders and to ship by sea as to save cost and ensure save delivery. In implementing your first import transaction, you need to formulate your import logistics plan by detailing the following: QUESTION 1 Which Incoterm are you recommending and give the reasons why. QUESTION 2 Which type of payment will you negotiate with the sellers in Hong Kong? Discuss in detail. QUESTION 3 Choose and discuss the type of contract of carriage that would be appropriate for the shipment. QUESTION 4 Supply a detailed list, with a brief discussion of the documents required for this specific shipment.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
Incoterms being incoterms 2020
Contracts of carriage being the types of bill of lading
Transcribed Image Text:As a young entrepreneur in Gauteng you have been undertaking research on the internet
and have discovered a niche in the market for home office productivity improvement
products. You have contacted three suppliers in Hong Kong who have agreed to supply
you with various of their products. You have placed an initial order on Supplier A for 10
cases, Supplier B 25 cases and Supplier C 35 cases. The suppliers have agreed to pack
their various products into cardboard boxes with the following measurements: Length 600
mm; Width 300 mm and Height 745mm and an average weight of 10 kg per carton. The
total value of the three orders totals R210,000 and you have, with the assistance of your
family, arranged for the necessary finance.
As the products are of a delicate nature, you have decided to consolidate and containerise
the three orders and to ship by sea as to save cost and ensure save delivery. In
implementing your first import transaction, you need to formulate your import logistics plan
by detailing the following:
QUESTION 1
Which Incoterm are you recommending and give the reasons why.
QUESTION 2
Which type of payment will you negotiate with the sellers in Hong Kong? Discuss in
detail.
QUESTION 3
Choose and discuss the type of contract of carriage that would be appropriate for the
shipment.
QUESTION 4
Supply a detailed list, with a brief discussion of the documents required for this
specific shipment.
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