There is a case study on Incoterms as part of this course. It describes a situation of sale of vehicles from Italy to the USA, and contains both financial and trade aspects. It does have some questions in the case, please use them to think through the issues, but answer the following questions for the assignment.

Assignment Submission Questions

The case requires calculations and recommendations to be made for the following questions:

1. Calculate the price to quote to the customer for each Incoterm option so that the expected contribution margin stays the same regardless of the Incoterm. Show these in the spreadsheet you must use for submission. Remember the requirements for spreadsheets and formulas.
2. Define the risk / responsibility implications for each Incoterm, and give practical and sensible ways to mitigate them. Mitigation should be bullet points to show you have clear understanding of how to achieve these, not a full write up.
3. Which criteria should you use to choose the Incoterm that is the most appropriate for your company? This requires research of an academic standard.