国际贸易实务双语教程Chapter5 Price of Commodity.ppt

Chapter 5 Price of Commodity 5.1 Pricing Correctly Implement Pricing Principles Price Components of Export Commodities Export Exchange Cost Profit and Loss Ratio of Export Commodities Foreign Exchange Earned through Export (Exchange Rate Appreciation) Price Components of Export Commodities Four Components Components of FOB, CFR and CIF FOB CFR CIF Conversion of FOB, CFR and CIF FOB CFR CIF Export Exchange Cost Definition It refers to the amount of RMB required for a unit of foreign currency of certain export commodity. Formula Export Exchange Cost = Total Export Cost(RMB)/Export Foreign Exchange Net Income (dollars) Formula Total Export Cost Export Foreign Exchange Net Income Overseas Cost Relationship among Variables Case Study: A trading company exports 10,000 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 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. Profit and Loss Ratio of Export Commodities 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 means 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 Formula Profit and Loss Ratio of Export Commodities= (RMB Net Income of Export Sales – Total Export Cost)/ Total Export Cost ×100% Case Study: connected to the previous one Please calculate the