7. As a new seller in the international marketplace, transaction risk is a big issue for...

7. As a new seller in the international marketplace, transaction risk is a big issue for me. I have heard about a documentary transaction involving a Bill of Lading, but don't know what that means. Please describe it to me. Additionally, I want as little responsibility as possible when it comes to the delivering the goods to the buyer. How can I do this? Explain citing class concepts.

Solutions

Expert Solution

Bill of lading is the receipt that is given by the carrier as the acknowledgement that the goods have been loaded into the carrier. Bill of lading is the document of title of goods where it is the evidence of any insurance claim. Bill of lading is issued in 2/3 for at where orginal receipt is enough to claim the goods as it is one form of contract. Goods are only released at the destination only after submitting the orginaor bill of lading receipt.

These are following parties involved in bill of lading

1) Seller and buyer

2) Notifying person to whom we should notify after the consignment reaches the destination

3) Carrying vessel details

In order for trade ICC set some terms for both seller and buyer which are called as INCOTERMS which every country follows.

There is one Inco Term called as FCA where the seller has minimum responsibility when it comes to deliver goods to buyer.

FCA : Free Carrier

This means the seller deliver the goods upto the carrier mentioned by the buyer. Cost and risk of seller are only upto that point after that buyer responsible to that goods.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Explain how the use of a letter of credit in an international transaction reduces the risk...

Explain how the use of a letter of credit in an international transaction reduces the risk for a seller. In your answer, describe two factors which may increase the cost of a letter of credit for the buyer.

A seller faces two buyers: Big and Small. The seller knows the following willingness to pay...

A seller faces two buyers: Big and Small. The seller knows the following willingness to pay values: Big is willing to pay $10 for one unit, $5 for a second unit, $2 for a third unit, and does not want more than three units; Small is willing to pay $6 for one unit and does not want more than one unit. Assume the seller cannot distinguish which buyer is Big and which buyer is Small. Assume resale is impossible. What...

Create a flow chart of a letter of credit transaction. There will be a buyer, seller,...

Create a flow chart of a letter of credit transaction. There will be a buyer, seller, issuing bank, correspondent bank, foreign freight forwarder, customhouse broker in the buyer’s country and the shipper (air or water). The seller starts by making an offer to a buyer who either accepts the term of sale or asks for different terms. The buyer then goes to the issuing bank and so forth.

A ________ is a sales transaction arranged by the seller to benefit a buyer who pays...

A ________ is a sales transaction arranged by the seller to benefit a buyer who pays an unreasonably low price for the item sold. QUESTION 1 A ________ is a sales transaction arranged by the seller to benefit a buyer who pays an unreasonably low price for the item sold. Fraud in the inducement. Blue Sky transfer. Sale under duress. Sham sale. QUESTION 2 ________ of a security interest provides protection to secured parties from third parties who may later...

The internet has reshaped the global marketplace for international marketers both on the demand- and the...

The internet has reshaped the global marketplace for international marketers both on the demand- and the supply side" (Kotabe & Helsen, 2017: p. 577). Explain the statement and critically analyze how the internet has revolutionized international marketing. Also highlight any future potentials and challenges.

19. Foreign exchange rate risk: How is transaction exposure different from operating exposure? 20. International debt:...

19. Foreign exchange rate risk: How is transaction exposure different from operating exposure? 20. International debt: What are Yankee bonds?

In the past weeks we conversed about the domestic and international marketplace for jobs, along with...

In the past weeks we conversed about the domestic and international marketplace for jobs, along with the knowledges and skills we need to succeed in that world. In this discussion thread discuss how you determine the goals one should pursue in their life, and any processes and strategies you follow to achieve your goals.

The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting...

The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) will call for major changes in the way companies in the airline industry recognize revenue. Airlines may have to change how they account for loyalty status benefits, mileage credits, change fees, and breakage for tickets that expire unused. The American Institute of Certified Public Accountants (AICPA) has formed an airlines task force to address implementation issues of the new standard for...

The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting...

Select a multinational company that sells products in the international marketplace. What types of cultural challenges...

Select a multinational company that sells products in the international marketplace. What types of cultural challenges does the company face when it attempts to market its products worldwide? Provide an example of how the company has adapted its products in different countries and regions, especially emerging markets. This writing assignment should be completed in the standard APA format.

Subjects