IDRAC GROUP EXAM
BACHELOR – 2nd year
ACADEMIC YEAR 2019/2020
Date Duration Semester Credits
31/03/2020 2 4 2
Techniques of international trade
PARKER David
Authorized Documents: Yes
Bilingual dictionary allowed: Yes
Calculator allowed: Yes
Phones and smartphones banned
The exam subject includes: 5 pages
The exam subject and the drafts must be handed in at the end of the session
1
, Your company, based in Strasbourg (France), wishes to import drones and their
remote controls destined for children and adults to play with.
As you work in the purchasing department, you must order 120 toy drones. They are
packed in correctly labelled cardboard boxes, which weigh 4 kg each and have a
volume of 0.5 m3. The 120 boxes fit on 19 pallets each wrapped in a plastic film
(enough to fill a 40 feet container).
These drones contain lithium batteries which can cause a lot of damage if they burn,
especially as humidity and extreme temperatures can cause electric shortcuts, and
water can destroy their internal electronics.
They will all be shipped from very far away, so they will have to cover very long
distances (including grounds, mountains, oceans).
Question 1 (5 points):
Which mean of transport would you recommend for this type of cargo
regarding its size, characteristics and origin? (3 points)
As it will be containerised freight, what recommendations would you make? (2
points)
Question 2 (3 points):
Different foreign suppliers made the following offers:
A seller in China offers drones designed and made in China with components
exclusively made in China.
A seller in Taiwan offers drones designed in Canada, 10% of the parts are made in
China and all the rest are made and assembled in Taiwan.
A seller in the USA offers drones designed in California, 60% of the parts are made in
Japan, all the rest of the parts are made in China and the drones are assembled in
China.
Determine the custom’s origin of the goods for the offer made by:
o The seller in China (1 point)
o The seller in Taiwan (1 point)
o The seller in the USA (1 point)
(explain your reasoning)
Question 3 (2 points):
Each seller offers a price quotation:
Seller in China
FOB INCOTERMS® rule to Shanghai seaport
Total price to pay to the seller: USD 5,000
Seller in Taiwan
CFR INCOTERMS® rule to Marseille seaport (France)
Total price to pay to the seller: USD 6,000
2
BACHELOR – 2nd year
ACADEMIC YEAR 2019/2020
Date Duration Semester Credits
31/03/2020 2 4 2
Techniques of international trade
PARKER David
Authorized Documents: Yes
Bilingual dictionary allowed: Yes
Calculator allowed: Yes
Phones and smartphones banned
The exam subject includes: 5 pages
The exam subject and the drafts must be handed in at the end of the session
1
, Your company, based in Strasbourg (France), wishes to import drones and their
remote controls destined for children and adults to play with.
As you work in the purchasing department, you must order 120 toy drones. They are
packed in correctly labelled cardboard boxes, which weigh 4 kg each and have a
volume of 0.5 m3. The 120 boxes fit on 19 pallets each wrapped in a plastic film
(enough to fill a 40 feet container).
These drones contain lithium batteries which can cause a lot of damage if they burn,
especially as humidity and extreme temperatures can cause electric shortcuts, and
water can destroy their internal electronics.
They will all be shipped from very far away, so they will have to cover very long
distances (including grounds, mountains, oceans).
Question 1 (5 points):
Which mean of transport would you recommend for this type of cargo
regarding its size, characteristics and origin? (3 points)
As it will be containerised freight, what recommendations would you make? (2
points)
Question 2 (3 points):
Different foreign suppliers made the following offers:
A seller in China offers drones designed and made in China with components
exclusively made in China.
A seller in Taiwan offers drones designed in Canada, 10% of the parts are made in
China and all the rest are made and assembled in Taiwan.
A seller in the USA offers drones designed in California, 60% of the parts are made in
Japan, all the rest of the parts are made in China and the drones are assembled in
China.
Determine the custom’s origin of the goods for the offer made by:
o The seller in China (1 point)
o The seller in Taiwan (1 point)
o The seller in the USA (1 point)
(explain your reasoning)
Question 3 (2 points):
Each seller offers a price quotation:
Seller in China
FOB INCOTERMS® rule to Shanghai seaport
Total price to pay to the seller: USD 5,000
Seller in Taiwan
CFR INCOTERMS® rule to Marseille seaport (France)
Total price to pay to the seller: USD 6,000
2
