Case 1: Cirque Hmisphre and the Athens theatre

Chelsea, a coordinator at Ottawa-based ABC Freight Forwarding, received a call from Muriel, logistics coordinator at Cirque Algonquin (Cirque), an Ottawa-based business that produces and sells circus shows in Canada and an entire Europe. Its customers were primarily foreign promoters such as festivals, theatres, and cultural institutions managers. Although the Cirque's offices were in Ottawa, the gears were shipped from a warehouse in Cornwall, Ontario. The main advantage of this new approach was that the shipping of the kits was now less urgent. This allowed them to travel as whatever is the cheapest freight mode. When Cirque Algonquin does poor planning to deliver circus equipment to the destinations, they have to AIR dispatch (costly) equipment to make on-time delivery. Muriel is the only employee at Cirque Algonquin working the shipping of kits and making the artists' travel arrangements (plane tickets, visas, etc.). She has a considerable load on her shoulders because the show could not be presented if the merchandise was not received on time or was damaged in route. The company risked losing any future contracts with the customer in question.

Cirque Algonquin was currently negotiating the sale of a new show to one of the largest theatres in Athens, Greece.

The program director at Athens has little experience with the transcontinental shipping of materials, customs regulations, and trade constraints. As a rule, if the materials were shipped from out of the EU zone, the manager preferred to receive a turn-key production (everything delivered to the door); he did not want to worry about maritime transport, import procedures or delivery of the merchandise to the theatre, as he has little experience or technical expertise in this area. Nevertheless, he knew a few local transport operators and customs brokers he could hire to clear the containers in Greece and deliver them to the theatre.

For its part, Cirque Algonquin had never shipped show kits to Greece, and the logistics coordinator was concerned that the country's economic situation could impact the quality of its logistics infrastructures, particularly those at the port. The main risk in her mind was congestion at the port of Athens (the Port of Piraeus), which could delay the delivery of the kit to the theatre. Should this happen, the Cirque could be held responsible for any consequences stemming from the delay and risk missing out on future business opportunities with the same customer.

QUESTIONS

1. Based on the above situation, consider yourself as Chelsea (coordinator at Ottawa-based ABC Freight Forwarding) offer the best possible solutions to Muriel (coordinator at Cirque Algonquin). The suggested solutions have to be in terms of the best suitable INCOTERMS 2020 to the situation and justify your decision ( 7 points)
2. Based on the INCOTERMS 2020 you have suggested, write down all possible cost elements and risks Cirque Algonquin you should bear (2 points)
3. in the case in indicates "As a rule, if the materials were shipped from out of the EU zone, the manager preferred to receive a "turn-key production." What "turn-key" means in terms of Internationalization? (2 points).