Bài giải Assignment 4

GROUP ASSIGNMENT Prepare export proposal? a Identify the Objectives: Profit: Approximately 247,700 USD Expected profit rate = 247,700/1,650,000 = 15% b Know the customer: Partner: ABC Trading Co., Ltd (Japan) c Action Plans: - Product: o Commodity: Robusta Coffee o Quantity: 1000 tons o Quality: As sample agreed by two parties - Selling price: o Selling price: 1,650 USD/MT FOB Saigon port o Buying price: 32,000,000 VND/ton (includes packaging fee and inland freight to Saigon port) o Term of sales: FOB, Saigon Port - Transport: o Time of delivery: Before December 20th, 2019 o FOB regulation: BNEX has to deliver coffee to Saigon port and be responsible for the risks of cargos until the coffee are on vessel board at Saigon port o Port of loading: Saigon port - Payment: o Method of payment: L/C time draft, 03 months after receiving goods o Terms of payment: Deferred Payment d Profit and Loss: - Total revenue: 1,650 USD/MT x 1,000 = 1,650,000 USD - Total cost: Buying price: 32,000,000 VND/MT Financial fee (interest rate): 32,000,000 VND/T x x 0,7% = 672,000 VND Total cost per unit: 32,000,000 + 672,000 = 32,672,000VND = 1,402.3 USD Total cost: 32,672,000 x 1,000 = 32,672,000,000 VND = 1,402,231.76 USD - Total profit: Total profit per unit: 1,650 - 1,402.3 = 247.7USD/ MT Total profit: 247.7 x 1,000 = 247,700 USD Exchange rate of export (Re) - Re = Total cost per unit (VND)/Total revenue per unit (USD) - Re = 19,801 VND/USD < Rc = 23,300 VND The buyer proposes the price lower than USD 1,600/MT FOB Saigon port, and L/C 06 months after receiving goods How about ZOPA in this case? How to create value to exchange in this deal?  Total cost: Total cost per unit: Buying price: 32,000,000 VND/MT Financial Fee (Interest rate 0,7%/month) = 32,000,000 x 0,7%x = 1,344,000 VND => Total cost per unit = 32,000,000 + 1,344,000 = 33,344,000 VND = 1,431.07 USD => Total cost = 1,431.07 x 1000 = 1,431,070 USD $1431,07 $0 $1600 The seller sells Robusta coffee for a minimum price of $ 1431.07/MT, while buyers are willing to buy for lower than $ 1600 / MT So, Zone of Possible Agreement (ZOPA) in this case is $1431,07 - $1600 How to create value to exchange in this deal?  Discount: Discount for buyers if buyers buy in large quantity, which can increase sales and profits, buyers can buy at a lower price Maximum discount of 10,56%: (1,600-1,431.07) / 1,600 = 10.56%  Delivery time: Earlier time of delivery  Payment period:  If buyers pay in advance, pay at sight or pay early, the seller will accept a certain discount  If the buyer accepts the higher price offered by the seller, the seller may accept a longer payment period 3 As the seller, prepare export proposal to get profit at least USD120/MT a Identify the Objectives: - Get profit more 120/MT - Expand business in Japan in long term b Know the customer Partner: ABC Trading Co., Ltd (Japan) c Prepare key point  Product: - Commodity: Robusta Coffee Quantity: 1,000 tons Quality: As sample agreed by two parties  Price: - Selling price:1,522.3 USD/ MT Financial fee (interest rate): 32,000,000 x x 0,7% = 672,000 VND Total cost per unit: 32,000,000 + 672,000 = 32,672,000VND = 1,402.3 USD - Profit: 120 USD/ MT Selling price: 1,402.3 + 120 = 1,522.3 USD/ MT Buying price: 32,000,000 VND/ton (includes packaging fee and inland freight to Saigon port) Term of sales: FOB, Saigon Port  Transport: - Time of delivery: Before 20 December, 2019 FOB regulation: BNEX has to deliver coffee to Saigon port and be responsible for the risks of cargos until the coffee are on vessel board at Saigon port Port of loading: Saigon port  Payment: - Method of payment: L/C time draft, 03 months after receiving goods - Terms of payment: Deferred Payment d Profit and Loss Total revenue: 1,522.3 USD/ MT x 1000 = 1,522,300 USD Total cost: ● Total cost per unit - Buying price: 32,000,000 VND/MT - Financial fee: 32,000,000 VND/T x x 0,7% = 672,000 VND  Total cost per unit: 32,000,000 + 672,000 = 32,672,000VND = 1,402.3 USD  Total cost: 32,672,000 x 1,000 = 32,672,000,000 VND = 1,402,231.76 USD ● Total profit: - Total profit per unit: 120 USD/MT - Total profit: 120 x 1,000 = 120,000USD ● Exchange rate of export (Re) - Re = Total cost per unit (VND)/Total revenue per unit (USD) = 32,672,000 / 1522.3 = 21,461 VND/ USD - Re = 21,461 VND/USD < Rc = 23,300 VND ... = 32,000,000 x 0,7%x = 1, 344 ,000 VND => Total cost per unit = 32,000,000 + 1, 344 ,000 = 33, 344 ,000 VND = 1 ,43 1.07 USD => Total cost = 1 ,43 1.07 x 1000 = 1 ,43 1,070 USD $ 143 1,07 $0 $1600 The seller... coffee for a minimum price of $ 143 1.07/MT, while buyers are willing to buy for lower than $ 1600 / MT So, Zone of Possible Agreement (ZOPA) in this case is $ 143 1,07 - $1600 How to create value... 672,000 VND Total cost per unit: 32,000,000 + 672,000 = 32,672,000VND = 1 ,40 2.3 USD - Profit: 120 USD/ MT Selling price: 1 ,40 2.3 + 120 = 1,522.3 USD/ MT Buying price: 32,000,000 VND/ton (includes