Chapter-5-Price-of-Commodity-国际贸易实务双语教程(课件)

1、Chapter 5 Price of CommodityChapter 5 Price of Commodity5.1 PricingCorrectly Implement Pricing Principles Price Components of Export Commodities Export Exchange Cost Profit and Loss Ratio of Export CommoditiesForeign Exchange Earned through Export (Exchange Rate Appreciation)5.1 PricingCorrectly Imp

2、lementPrice Components of Export Commodities Four ComponentsComponents of FOB, CFR and CIF FOB CFR CIFConversion of FOB, CFR and CIF FOB CFR CIFPrice Components of Export ComChapter-5-Price-of-Commodity-国际贸易实务双语教程(课件)Chapter-5-Price-of-Commodity-国际贸易实务双语教程(课件)Case Study: A trading company exports 10

3、,000 units of arts and crafts which cost 300,000 Yuan (30 Yuan per unit), other domestic cost: 8000 RMB, expected profit: 10%, freight: 10 units/CTN, 1000 cartons, carton size: 255632, GW: 32KG NW: 30KG, the freight to Europe is calculated by W/M as 120 Dollars per ton. The price of 40 containers to

4、 Europe: 3500 Dollars, insurance by 11% of the invoice value against all risks at the premium rate of 0.8%, foreign sales price: USD4.85/PC CIF London. Please calculate the export exchange cost respectively by container and by cargo.Case Study: A trading company Profit and Loss Ratio of Export Commo

5、dities Definition Profit and Loss Ratio of Export Commodities demonstrates the ratio between the volume of export profit and Total Export Cost. The volume of export profit indicates the balance between net RMB income of export sales and total export cost. If the balance is a positive number, it mean

6、s making a profit, and vice versa. The very ratio is perceived as an important index to measure the degree of export profit or loss.Formula Profit and Loss Ratio of ExporFormula Profit and Loss Ratio of Export Commodities=(RMB Net Income of Export Sales Total Export Cost)/ Total Export Cost 100%Form

7、ula Profit and Loss RatiCase Study: connected to the previous onePlease calculate the profit and loss ratio of export commoditiesCase Study: connected to the pForeign Exchange Earned through Export (Exchange Rate Appreciation) Definition Foreign exchange earned through export is concluded by the rat

8、io between certain difference calculated by export foreign exchange net income minus foreign exchange cost of raw materials and foreign exchange cost of raw materials. The ratio is universally adopted in imported materials processing and supplied materials processing to calculate exchange rate appre

9、ciation.Formula Foreign Exchange Earned througFormula Foreign Exchange Earned through Export (Exchange Rate Appreciation) =(Export Foreign Exchange Net Income Foreign Exchange Cost of Raw Materials)/ Foreign Exchange Cost of Raw Materials 100%Formula Foreign Exchange EarneCase Study:A trading compan

10、y imports fabric to proceed to clothing at an amount of 100,000 Dollars in CIF terms (USD9/PC CIF HAMBURG per garment). The total freight: 8000 Dollars, premiums: 2000 Dollars. Please calculate the exchange rate appreciation.Case Study:A trading company i5.2 Export Quotation Accounting in Trade Prac

11、ticeMethods of Calculating Export Exchange Cost in Chinas Foreign Trade Practice Export Quotation Accounting Export Counter-Offer Accounting 5.2 Export Quotation AccountinMethods of Calculating Export Exchange Cost in Chinas Foreign Trade Practice Case One: A trading company exports a number of spor

12、ts shoes to the United States. The purchasing price (Tax Price) is 50 Yuan for each shoe, the tax rebate rate is 13%, the cost rate and the expected profit rate of the company is 5% and 10%. The foreign exchange rate of BOC: 1Dollar = 6.57 Yuan. Please calculate the FOB price of this trading.Methods

13、 of Calculating Export Case Two: A trading company exports 10,000 sports shoes. The purchase price (after tax) of each shoe is 70 Yuan, the tax rebate rate is 11%, fixed cost of company: 5%, the price of export: 9.68 Dollars per pair CIF New York, freight: 4,350 Dollars, premiums: 1100 Dollars. Plea

14、se calculate export exchange cost. Case Two: Export Quotation Accounting Case one A trading company exports a number of umbrellas to UK, shipped in 20-feet container, purchase price (Tax Price) charges 50 RMB each, value added tax rate: 17%, tax rebate rate:9%, fixed cost (domestic cost):5%, expecte

15、d profit:10%, package cost:2,200 Dollars, 40 umbrellas each carton, carton size: Export Quotation Accounting Ca463826,G.W.:36kg,N.W.:20kg. The buyer requires insurance covered all risks, premium rate 0.6%, and the foreign exchange rate of BOC: 1Dollar = 6.57 Yuan. Commission rate: 3%. The company ch

16、arges a 10% profit rate at the price of USD7.52/PC CIFc3 London.463826,G.W.:36kg,N.W.:20kg. Th5.3 Commission and DiscountCommission Calculation and Payment Methods of Commissions Discount (Rebate) 5.3 Commission and DiscountComCommission Definition Commission is the remuneration for the agents who p

17、rovide service for principals. During trading, commission is usually in the form of remuneration which either side of a trade provides to the middleman. For example, exporters pay commission to sales agents, or importers pay commission to purchase agents.Commission Definition Therefore, commission a

18、pplies to the contract signed by the exporter/importer and the agents. Certain trading occurs through middlemen or agents who need to be paid commission. If the ratio of commission is defined, we call them the defined commission; otherwise, we call them undefined commission which agents may require

19、from both sides. Therefore, commission appliCalculation and Payment Methods of Commissions Calculation: by turnover valuePayment methods of commissionCalculation and Payment MethodDiscount (Rebate) Definition Discount is aimed to motivate the initiatives of the buyer, which is provided by the seller

20、 as a concession in the contract. TypesDefined MethodsCalculation and Payment Methods of DiscountDiscount (Rebate) DefinitionCase Study Case one Case twoCase threeCase Study Case one Case One A trading company exports a number of commodities abroad, the original price: 2,000USD per metric ton CIF3%

21、London, the buyer require CIF5% London. Insurance coverage for the original premiums against all risks including war risks, the rates was 0.8 USD and 6%, in accordance with 110% CIF price, Please calculate CFRC5% London.Case One A trading company eCase Two A UK client ordered 1000 traveling bags, re

22、quiring CIF5% Liverpool, other conditions: domestic purchase cost of traveling bags is 50 Yuan per piece, other dominate cost is 5,000 Yuan; the expected profit rate is 10%. The bags are packaged in cartons, 20 per carton. Freight is 20 Dollars per carton from start port to Liverpool. Overseas shipping premium is defined as 0.8% by CIF, which adds 10% insurance against all risks and war risks. (P.S: Exchange rate of RMB against USD is 8:1.)Case Two A UK client orderedCase Three A UK client ordered 10,000 jeans, requiring CIFc5 LONDON, premiums covering all. Purchase cost 30 RMB