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Ocean tr Wonsan to Constantza Wonsan to Latakia Suez Canal charges Tir: $US42,000 $US33,000 $US3,100 QUESTIONS 1. Should Terim let somebody else complete the transaction

Ocean tr Wonsan to Constantza Wonsan to Latakia Suez Canal charges Tir: $US42,000 $US33,000 $US3,100 QUESTIONS 1. Should Terim let somebody else complete the transaction because he knows that if he doesn't sell to the North Kore- ans, someone else will? 2. What are the total costs given in the case for the option of moving via Romania? 3. What are the total costs given in the case for the option of moving via Syria? 4. Which option should Terim recommend? Why? 5. What other costs and risks are involved in these proposed transactions, including some not mentioned in the case? $US15,000 $US12,000 Constantza into Turkey Latakia into Turkey Handling fees at the Liman (Syria or Romania) Generating false Romania origin documents Projected amount of rusvet at Syrian-Turkish border Currency exchange rates Option 1: Wonsan/Constantza/Turkey would take 43 days Option 2: Wonsan/Latakia/Turkey would take 22 days 1.25 percent of the total value of goods 16,000,000,000 TL 10 percent of shipment's value $US11,567,000 TL 6

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