Learning Outcome 8 of this module anticipates your ability to plan foreign trade operations between specific trading countries. This third assignment provides this opportunity, and the following outline specifies the criteria which must be met in order to achieve some degree of success.
1. Two countries must be selected between which the transaction must take place.
2. The focus of this work must be either on the seller/exporter or the buyer/importer.
3. The goods must be products or commodities and not oil, gas or services.
4. The countries must not both be in the same regional trade bloc.
5. Use a ‘D’ Incoterm when the seller is the exporter, or Ex Works if the buyer is controlling the movement. If your company uses other Incoterms, these must be changed to a ‘D’ term or EXW.
6. Select the mode of transport to be used.
7. The transaction is to be paid for either by a documentary credit or documentary collection.
8. The seller will allow the buyer 60 days after arrival of the goods at destination to pay the contracted price. Discuss how the seller will ensure receiving payment.
9. Identify how either party will arrange short-term finance to support cash flow. DO NOT USE THE OVERDRAFT FACILITY FOR THIS PURPOSE.
10. Specify the documentation which will be required to achieve a successful outcome to this transaction.
11. Where appropriate, the Harvard System of references must be used throughout this work,
Your research should use the export process sequence and the work must include all the elements discussed in the eleven weeks of the course. All your decisions relating to the criteria must be explained.
The completed work should not exceed 2,500 words, with double spacing, using Arial font size 12.
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