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Chapter2InternationalTradeTerms12345678910I.MultiplechoicesBCACCDABCDII.TrueorfalsestatementsTTFFTFFFFTIII.Explainthefollowingterms1.shipmentcontractShipmentcontractisacontractusinganIncotermwhichindicatesthatthedeliveryhappensatthetimeorbeforethetimeofshipment.2.symbolicdeliverySymbolicdeliveryisadeliverysituationinwhichwhenthesellerdeliversthebuyerdoesnotphysicallyreceivethegoods.Thiskindofdeliveryisprovedbythesubmissionoftransportdocumentbythesellertothebuyer.3.arrivalcontractArrivalcontractmeansacontractusinganIncotermwhichindicatesthatthedeliveryhappenswhenthegoodsarriveatthedestination.4.actualdeliveryActualdeliveryreferstoadeliverysituationinwhichwhenthesellerdeliversthebuyerdoesphysicallyreceivethegoods.IV.Shortquestions1.WhopaysforloadingforshipmentunderFOB?Theseller.2.WhopaysforunloadingunderCIF?Thebuyer.3.CompareandcontrastFOB,CFRandCIF?Similarities:a.Theseller'sriskwillbetransferredtothebuyerwhenthegoodsareloadedonboard,b.Thesellerisresponsibleforexportcustomsformalitieswhilethebuyerisresponsibleforimportcustomsformalities,c.Thebuyerisresponsibleforunloadingthegoodsattheportofdestination,d.Allthreetermscanonlybeusedforwaterwaytransportation.Differences:a.FOBrequiresthebuyertoarrangeandpayfortheoceantransportation;CFRrequiresthesellertoarrangeandpayfortheoceantransportation;CIFrequiresthesellertoarrangeandpayfortheoceantransportationandinsuranceagainstthebuyer'srisk.4.Whatarethetwotypesoftradetermsconcerningthetransferofrisks?Shipmentcontracttermsvs.arrivalcontractterms.Undershipmentcontracttermstheseller'sriskwillbetransferredtothebuyerbeforethegoodsdepartfromtheplace/portofshipment.Underarrivalcontracttermsthesellerwillbeartheriskofthegoodsuntilthegoodsarriveatthedestination.5.WhatarethedifferencesandsimilaritiesbetweenCPTandCFR?Majorsimilarities:a.Thesellershouldcontractandpayforthemajorcarriage.b.Thesellerisnottakingtheriskoflossofordamagetothegoodsduringthetransportation.Difference:a.CPTisapplicabletoanykindoftransportationmodewhileCFRisonlyusedforwaterwaytransport,b.UnderCPTtheseller'sriskwillbetransferredtothebuyerwhenthegoodsarehandedovertothefirstcarriernominatedbytheseller.UnderCFRtheseller'sriskwillbetransferredwhenthegoodsareloadedonboardthevessel.6.WhatarethedifferencesandsimilaritiesbetweenCIPandCIF?Majorsimilarities:a.Thesellershouldcontractandpayforthemajorcarriage.b.Thesellerisnottakingtheriskoflossofordamagetothegoodsduringthetransportation,c.Thesellermustobtaininsuranceagainstthe1buyer'srisk.Difference:a.CPTisapplicabletoanykindoftransportationmodewhileCFRisonlyusedforseawayorinlandwaterwaytransport,b.UnderCPTtheseller'sriskwillbetransferredtothebuyerwhenthegoodsarehandedovertothefirstcarriernominatedbytheseller.UnderCFRtheseller'sriskwillbetransferredwhenthegoodsareloadedonboardthevessel.7.IfyoutradewithanAmerican,isthesalescontractsubjecttoIncotermswithoutanydoubt?Whatshouldyoudo?No.TheRevisedAmericanForeignTradeDefinitions1941isstillinuse,especiallyintheNorthAmericanarea.Ithasdifferentinterpretationaboutsometradeterms.Thetradersshouldclarifythechoiceofrulesbeforeanyfurtherdiscussion.8.Whatarethemostcommonlyusedtradeterms?FOB,CFR&CIF.9.WhoisresponsibleforcarryingoutcustomsformalitiesforexportsunderanFOBcontract?Theseller.AccordingtoIncoterms2010,exceptEXWandDDPthesetwoterms,alltheothereleventermsrequirethesellertohandletheexportcustomsfor...