Bob is a keen musician. He knows very little about business but plans to open a shop selling high quality musical instruments. After extensive research he decides to place a large order with Olaf, a German producer of pianos, violins and guitars. Olaf asks Bob what terms he would prefer and offers him different prices depending on whether he buys EXW, FCA, DDP, CPT or CIP. Unfortunately, this was not part of Bob's research and he has no idea what these terms mean. Advise Bob about each of the terms, and the appropriateness of each for his situation. In your advice, include details on liability for loss or damage, responsibility for export and import formalities, loading and unloading, transport costs, modes of transport, insurance and price. Note that Bob is not afraid to take risks.