内容正文:
Price of Import and Export Commodity
UNIT 3
Case Lead-in
PART 1
Reading
PART 2
Sample Conversations
PART 3
Case Lead-in
Part 1
A Chinese company A quoted the fresh vegetables USD price and JPY price to a Japanese company B according to the USD/JPY exchange rate of 1:104 on Dec. 1. B accepted the quotation in USD and concluded a contract covering 1,000 metric tons of vegetables valued USD 1 million. On the date of payment, the USD/JPY exchange rate was 1:110, while the USD/CNY exchange rate remained stable. B intended to choose JPY price quoted on Dec. 1 by A and, in turn, increase the unit price by 5%. Would A agree to the conditions? Why?
It is known to all of us that price, which should be carefully considered, is one of the most important factors in international business activities. In practical negotiations, because bargain is a common occurrence, the seller or the buyer should not ignore the following items that affect pricing: fluctuations of the currency used in the transaction, trade terms, terms of payment, date of delivery, packing, commission and discount, etc.. Once given the factors affecting prices, the seller or the buyer is now ready to select a workable price. In any case, the price will have to be somewhere between one that is too low to produce a profit and one that is too high to result in any demand.
Reading
Part 2
Pricing Considerations
Pricing is one of the most important and complex tasks in business, and even a problem when linked with exporting. An exporter should sell his products at a price acceptable to the customers and, at the same time, generate enough revenue to cover all the costs. Appropriate pricing is not easy, which needs skills and must be treated seriously and carefully.
The following factors should be considered in arriving at a potential price:
(1) Having a good knowledge of the international market level, establishing all relevant market data on competitive prices for similar products and evaluating them.
(2)