ANSWER THREE QUESTIONS OF YOUR CHOICE

1. A COPPER EXPORT TRADING FIRM HAS REGULAR SHIPMENTS FROM MOZAMBIQUE TO KUWAIT. GOODS ARE LOADED AT TERMINAL ONTO BULK CARRIERS AT THE PORT OF BEIRA, MOZAMBIQUE. ANSWER THE FOLLOWING QUESTIONS 1) TERMS OF SALE; 2) MODE OF TRANSPORT; 3) INSURANCE OBIGATIONS 4) EXPORT/ IMPORT COUNTRY OBLIGATIONS; 5) SELLER'S RISK/COSTS.

2. ONCE YOU DECIDE TO GET INVOLVED IN EXPORT/IMPORT BUSINESS, YOU WOULD LIKE SOME ADVICE ON THE FOLLOWING: a) SHOULD I SET UP THE BUSINESS AS AN AGENT OR DISTRIBUTOR ? b) SHOULD I USE FOB OR CIF AS PRICE QUOTATION WHEN I EXPORT OR IMPORT THE MERCHANDISE? c) SHOULD I SIGN A CONTRACT WITH THE BUYER/SELLER OR CONCLUDE AN ORAL AGREEMENT? PROVIDE THE BEST ADVICE TO THE FIRM BASED ON THE ABOVE INFORMATION.

3. PEOPLE IN POOR COUNTRIES ARE MORE ENTREPRENEURIAL THAN PEOPLE IN RICH COUNTRIES. DO YOU AGREE? COMMENT.

4. COMPARE THE ADVANTAGES AND DISADVANTAGES OF USING A BRANCH OFFICE TO SELL GOODS OVERSEAS COMPARED TO THAT OF A SUBSIDIARY AS A SALES COMPANY.

5. DISCUSS TWO MAJOR RISKS IN FOREIGN TRADE AND HOW TO MANAGE THEM.

6. WHEN DOES RISK AND TITLE PASS FROM SELLER TO BUYER IN A) FOB CONTRACTS, B) CIF CONTRACTS C) FAS CONTRACTS.