外贸英语实务3
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大连理工大学出版社
Price of Import and Export Commodity Pricing Considerations
(3) Adjusting prices according to the exporter’s specific purposes or the importer’s requirements on the basis of international market level. (4) Watching the change of supply and demand relationship and the trend of rising or falling of the market prices. (5) Including adequate profit margin over actual production and distribution costs in price. (6) Considering the quality and quantity of the products contracted, the total cost of exporting (cost of production, selling and delivery costs, and taxes and tariffs), place and terms of delivery and other factors that influence export prices.
price terms.
大连理工大学出版社
It is noted that USD is the commonly used way to express the currency of one country. In ISO 4217 Currency Code List, the currency code is composed of the country’s twocharacter Internet country code plus an extra character to denote the currency unit. For example, the code for Canadian dollars is simply Canada’s two-character Internet code ( “CA”) plus a one character currency designator ( “D”). Other typical examples are CNY,
HKD, GBP, AUD and so on. EUR stands for Euro.
Total amount, as its name suggests, is the sum of the money for one business transaction. It equals to the unit price multiplied by the quantity of the goods. The total amount is often shown in the contract not only in Arabic numbers but also in English words.
(7) Considering terms of payment and the possible fluctuations of foreign exchange
rates.
大连理工大学出版社
Price Clause
Generally speaking, price clause, including unit price and total amount, is an important part of trade negotiation between the seller and the buyer, and should be clearly specified in the contract. A unit price consists of four parts: currency unit, unit price figure, measuring unit and price terms. Take the unit price of “USD200.00/MT, CIF London” as an example.“USD” means currency unit.“200.00”means the price figure for each metric ton of the goods.“MT” means the measuring unit and “CIF London” is the price term which refers to the division of relevant costs（e.g., freight and insurance premium), risks and obligations between the two parties involved in the transaction. The unit price is made differently according to different
carefully.
The following factors should be considered in arriving at a potential price: (1) Having a good knowledge of the international market level, establishing all relevant market data on competitive prices for similar products and evaluating them. (2) Considering the policies and regulations that apply to a particular international market area.
大连理工大学出ቤተ መጻሕፍቲ ባይዱ社
Money of Account and Money of Payment
Money of account is the currency used for price calculation, while money of payment is the currency for settlement. Generally, the money of account is the money of payment if there is no stipulation in the contract. When choosing the currency, the exporter and the importer should take foreign exchange rates into consideration, as the fluctuations of exchange rates may influence the interests of both parties. Theoretically, use of hard currency (currency that is reliable and stable and more in demand) as payment currency is more favorable to the exporter, while the importer prefers to pay in soft currency (currency that is not readily convertible to other currencies which are more in demand, and that is unstable in value).
大连理工大学出版社
Price of Import and Export Commodity Pricing Considerations
Pricing is one of the most important and complex tasks in business, and even a problem when linked with exporting. An exporter should sell his products at a price acceptable to the customers and, at the same time, generate enough revenue to cover all the costs. Appropriate pricing is not easy, which needs skills and must be treated seriously and
大连理工大学出版社
外贸英语实务 （第二版）
Unit 3 Price of Import and Export Commodity
Contents
Part I Case Lead-in
Part II Reading
Part III Sample Conversations
大连理工大学出版社
A Chinese company A quoted the fresh vegetables USD price and JPY price to a Japanese company B according to USD/JPY exchange rate of 1:105 on June 15. B accepted the quotation in USD and concluded a contract covering 1,000 metric tons of vegetables valued USD 1 million. On the date of payment, the USD/JPY exchange rate was 1:115, while the USD/CNY exchange rate remained stable. B intended to choose JPY price quoted on June 15 by A and, in turn, increase the unit price by 5%. Would Aagree to the conditions? Why? It is known to all of us that price , which should be care fully considered, is one of the most important factors in international business activities . In practical negotiations , because bargain is a com m on occurrence , the seller or the buyer should not ignore the following item s that affect pricing: fluctuations of the currency us e d in the trans action, trade terms , terms of payment, date of delivery, packing, com m is s ion and discount, etc. Once give n the factors affecting price s , the seller or the buyer is now ready to select a workable price . In any case , the price will have to be some where between one that is too low to produce a profit and one that is too high to result in any de m and.
Price of Import and Export Commodity Pricing Considerations
(3) Adjusting prices according to the exporter’s specific purposes or the importer’s requirements on the basis of international market level. (4) Watching the change of supply and demand relationship and the trend of rising or falling of the market prices. (5) Including adequate profit margin over actual production and distribution costs in price. (6) Considering the quality and quantity of the products contracted, the total cost of exporting (cost of production, selling and delivery costs, and taxes and tariffs), place and terms of delivery and other factors that influence export prices.
price terms.
大连理工大学出版社
It is noted that USD is the commonly used way to express the currency of one country. In ISO 4217 Currency Code List, the currency code is composed of the country’s twocharacter Internet country code plus an extra character to denote the currency unit. For example, the code for Canadian dollars is simply Canada’s two-character Internet code ( “CA”) plus a one character currency designator ( “D”). Other typical examples are CNY,
HKD, GBP, AUD and so on. EUR stands for Euro.
Total amount, as its name suggests, is the sum of the money for one business transaction. It equals to the unit price multiplied by the quantity of the goods. The total amount is often shown in the contract not only in Arabic numbers but also in English words.
(7) Considering terms of payment and the possible fluctuations of foreign exchange
rates.
大连理工大学出版社
Price Clause
Generally speaking, price clause, including unit price and total amount, is an important part of trade negotiation between the seller and the buyer, and should be clearly specified in the contract. A unit price consists of four parts: currency unit, unit price figure, measuring unit and price terms. Take the unit price of “USD200.00/MT, CIF London” as an example.“USD” means currency unit.“200.00”means the price figure for each metric ton of the goods.“MT” means the measuring unit and “CIF London” is the price term which refers to the division of relevant costs（e.g., freight and insurance premium), risks and obligations between the two parties involved in the transaction. The unit price is made differently according to different
carefully.
The following factors should be considered in arriving at a potential price: (1) Having a good knowledge of the international market level, establishing all relevant market data on competitive prices for similar products and evaluating them. (2) Considering the policies and regulations that apply to a particular international market area.
大连理工大学出ቤተ መጻሕፍቲ ባይዱ社
Money of Account and Money of Payment
Money of account is the currency used for price calculation, while money of payment is the currency for settlement. Generally, the money of account is the money of payment if there is no stipulation in the contract. When choosing the currency, the exporter and the importer should take foreign exchange rates into consideration, as the fluctuations of exchange rates may influence the interests of both parties. Theoretically, use of hard currency (currency that is reliable and stable and more in demand) as payment currency is more favorable to the exporter, while the importer prefers to pay in soft currency (currency that is not readily convertible to other currencies which are more in demand, and that is unstable in value).
大连理工大学出版社
Price of Import and Export Commodity Pricing Considerations
Pricing is one of the most important and complex tasks in business, and even a problem when linked with exporting. An exporter should sell his products at a price acceptable to the customers and, at the same time, generate enough revenue to cover all the costs. Appropriate pricing is not easy, which needs skills and must be treated seriously and
大连理工大学出版社
外贸英语实务 （第二版）
Unit 3 Price of Import and Export Commodity
Contents
Part I Case Lead-in
Part II Reading
Part III Sample Conversations
大连理工大学出版社
A Chinese company A quoted the fresh vegetables USD price and JPY price to a Japanese company B according to USD/JPY exchange rate of 1:105 on June 15. B accepted the quotation in USD and concluded a contract covering 1,000 metric tons of vegetables valued USD 1 million. On the date of payment, the USD/JPY exchange rate was 1:115, while the USD/CNY exchange rate remained stable. B intended to choose JPY price quoted on June 15 by A and, in turn, increase the unit price by 5%. Would Aagree to the conditions? Why? It is known to all of us that price , which should be care fully considered, is one of the most important factors in international business activities . In practical negotiations , because bargain is a com m on occurrence , the seller or the buyer should not ignore the following item s that affect pricing: fluctuations of the currency us e d in the trans action, trade terms , terms of payment, date of delivery, packing, com m is s ion and discount, etc. Once give n the factors affecting price s , the seller or the buyer is now ready to select a workable price . In any case , the price will have to be some where between one that is too low to produce a profit and one that is too high to result in any de m and.