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S1.M.Exporting and Importing.JNB224.P Bhaskar.docx Page 1 of 3 Pages The Australian Maritime College is an institute of the University of Tasmania Undergraduate Studies in Maritime and Logistics Management EXPORTING AND IMPORTING Instructions to candidates

1. This examination commences at 0900 hours (Australian Eastern Standard Time) .

2. The answer script is to be despatched to AMC Distance Education Centre no later than 1630 hours (Australian Eastern Standard Time) .

3. Late examination scripts will not be accepted. Failure to despatch your answer script to the AMC before the cut-off time will result in a Fail grade.

4. There are FOUR (4) questions. Candidates must answer all parts of all questions.

5. Marks are as indicated.

6. This examination is worth 50% of the the marks allocated to this unit.

7. Answers must be typed.

8. The Department’s system of referencing must be used.

9. Plagiarism, including copying the work of other students or any form of collusion is a punishable offence and may result in failure of the subject and/or exclusion from the AMC (refer to the section on Plagiarism in the Toolbox).

10. This examination consists of 3 pages.

11. The examination submission is one document: the abstract, table of contents, introduction and conclusion should deal with the examination in total. Marks will be deducted if these are not provided. It is not appropriate to provide separate abstracts, tables of contents, introductions and conclusions for each individual question.

12. If you have any questions regarding this examination please contact Distance Education. They will direct your query as appropriate. 2009.S1.M.Exporting and Importing.JNB224.P Bhaskar.docx Page 2 of 3 Pages

Question 1 Discuss the following statement: The essence of exporting is marketing. Nevertheless, the focus on marketing often results in the neglect of important areas that can provide the firm with a competitive advantage over its rivals. [15 Marks] Question 2 You are a small trader based in Australia and you need to prepare a quotation for an importer in the Philippines. The product is an industrial chemical and the importer wants 100 tonnes of it within thirty days. You have contacted the manufacturer in Australia and the manufacturer is not interested in exporting the product itself. However, the manufacturer is willing to sell it to you on a cash basis and has quoted a price of A$200 per tonne on EXW basis. His factory is situated on the outskirts of Sydney. Prepare the export quotation on the following basis:

1. FAS Sydney.

2. FOB Sydney.

3. CFR Manila.

The quotation should be in US Dollars. Payment will be by an irrevocable letter of credit and payable in 90 days. When preparing the quotation, consider the following:

a Sea freight to Manila is US$1100 per 20 foot container.

b Each container can load 20 tonnes.#p#分页标题#e#

c Inland haulage to Sydney port is A$500 per container.

d Container stuffing charge is A$250 per container.

e Terminal handling charge is A$300 per box in Sydney.

f Documentation and outward clearance fees payable to freight forwarder and broker are A$2000 lump sum.

g Current rate of foreign exchange is US$1 = A$1.30. Three month forward contract selling price of US$ is US$1 = A$1.20.

h The purchase will be paid by a bank loan with an interest rate of 12% per annum and you believe you need three months to repay the loan.

i You have decided that you will not do any business unless there is a 10% profit over the purchase cost.

[12 Marks] .S1.M.Exporting and Importing.JNB224.P Bhaskar.docx Page 3 of 3 Pages

Question 3 Why is the bill of lading an important document in an export transaction? Explain. [8 Marks]

Question 4 You are planning to export hiking shoes overseas from your country. What possible indicators can you use for market segmentation, both at the country market level and the customer market level? How important are the psychographic characteristics when selecting the target segments? [15 Marks]


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