- Trade Terms
  - Importance in International Trade
    - FOB, CFR, and CIF are most popular
    - Simplify negotiation process
    - Save time and cost
  - Definition of Trade Terms
    - Also called price terms or delivery terms
    - Represent obligations of seller and buyer
    - Component of unit price in trade
  - Key Trade Terms
    - FOB (Free On Board)
      - Seller's obligations
        - Obtain export license and documents
        - Deliver goods on board at port of shipment
        - Provide commercial documents
      - Buyer's obligations
        - Charter ships or book liner spaces
        - Pay freight and inform seller of vessel details
        - Handle import formalities and take delivery
      - Risk transfer
        - From seller to buyer when goods are on board
    - CFR (Cost and Freight)
      - Seller delivers goods on board
      - Seller pays cost and freight to destination port
      - Similar to FOB but seller arranges transport
    - CIF (Cost, Insurance, and Freight)
      - Same as CFR with additional insurance
      - Seller responsible for insurance arrangements
  - Common Features of FOB, CFR, CIF
    - Used in waterway transport
    - Risk transfers at port of shipment
    - Delivery port is shipment port
    - Seller handles export, buyer handles import
  - Differences Among FOB, CFR, CIF
    - Responsibilities and expenses vary
      - Transport and freight payment
      - Insurance and premium payment
    - Seller bears more in CIF than CFR and FOB
  - Case Study
    - Homework for further discussion