Incoterms Group

1) Given the information in the case, which Incoterms group (E, F, C, or, D) should ME pursue as the exporter? Why?

Since Mr. Jagr wants middle –of –the-road- transportation strategy, I would chose group C. ME should pursue the Incoterms group C. The C terms are shipment contracts that obligate the exporter to obtain and pay for the main carriage and/or cargo insurance.

2) Based on your response to Question 1, what responsibilities and risks will ME assume?

The exporter incurs all the cost to the port of destination such as, exporting packing, making, label, export clearance, transport from origin to port, load main carrier, and select main transport. The risk could be water damage, fire, and sinking of the freight.

3) Which mode of transportation should ME use to move Blasters to their new markets? What benefits does it bring?

Air freight should be the mode of transportation ME should use to move Blasters to their new market. The benefits of air are speed, freight protection, and flexibility.

4) Why should ME worry about something as mundane as paperwork? What documents must they prepare?

According to the textbook, missing or incorrect paperwork can cause delays and additional costs, so this is why one must worry about the paperwork. Freight documentation such as, invoices, export documents, and import documents must be prepared.

5) Identify and describe other global transportation issues that Jagr may be overlooking.

Efficiency is a global transportation issue that Jagr may be overlooking. It is the amount of money spent on transportation. Product safe is another issue which he may have overlooked. Last but not least, route planning impacts customer satisfaction, supply chain performance, and organizational success.