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Chapter TwoPrice of Commodity 商品价格Warming-up ExercisePart A English TexPart B Bilingual TexChapter TwoWarming-up ExerciseAnswer the following questions.1What factors shall be taken into consideration in export pricing?2What are the components in a unit price?Chapter TwoPart A English TexPricing Components of Commodity Pricing terms play an essential role in a contract. They are the core terms which can directly affect buyer and seller’s mutual interests and the possibility of a transaction. It’s important to learn what are included in export price and establish the terms of price properly in international trade practices.? Unit price and total value in price clause The standard format of a price in international trade has four components: pricing currency, units of measurement, unit price and trade terms. Generally pricing currency is the same as the payment currency. As units of measurement are different in different countries, they must be stipulated clearly. Unit price is the value of the goods in each unit of measurement. Trade terms can be put at the beginning or at the end of the price. But all the terms should be followed by the name of a place which is defined appropriately by the Incoterms 2010.Chapter TwoPart A English TexPricing Components of CommodityExamplesUnit price: at USD330.4/piece CIF New YorkTotal value: USD33040 (Say US dollars thirty-three thousand and forty only)Unit price: at GBP 95 per M/T CIF LondonTotal value: GBP 4750 (Say pounds sterling four thousand seven hundred and fifty only) Pricing Components in Export Commodities Export price is comprised of costs, expenses/ charges and anticipated profit.Other factors such as commission and discount may also affect export price.Chapter TwoPart A English TexPricing Components of Commodity Cost (1) Production cost Computing the actual cost of producing a product is of the core importance in pricing. Production cost normally include the material costs, labor cost, fixed costs and packing cost. (2
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