Prepare a letter to the Chinese company explaining the best options, your company’s preference, and reasons why this option is fair to both parties.

Assignment 1: Scenario Analysis and Discussion


Read the case scenario below. Based on the information presented in the case and the readings for this module, prepare answers to the questions provided after the case. You may find individuals in your company’s logistics or international compliance departments who are good sources of information.

Case Scenario

You are the Vice President of Sales for Detroit Mini Safe, a U.S. manufacturer of small fireproof safes with headquarters in Detroit, Michigan. You entered into a contract with Chinese Safe Distributors to supply model 1505 mini safes. Each safe weighs approximately 15 pounds. You just received a purchase order from China Safe Distributors for 2500 safes to be delivered to their warehouse in Jiashan.

Name of Company: Chinese Safe Distributors 

Address: 35 Taishan Rd, E.D.Z., Jiashan, Zhejiang, China. 

Description of Goods: 2500 qty Model 1505 Mini Safe with keypad combination 

Price: $250.00 each

Based on the information provided in the case scenario, answer the following questions:

Q 1. The order made a request for payment on an open account. They are willing to consider other terms, but they do not want to purchase against documents unless they can inspect the safes to ensure quality and to locate any possible damage. What method of payment will your company find acceptable? Prepare a letter to the Chinese company explaining the best options, your company’s preference, and reasons why this option is fair to both parties. Provide information on how you can address their concerns about the quality and damage issues.

Q 2. The order specified that China Safe Distributors would like to consider the cost of shipping before they decide whether to handle the arrangements themselves. Using several of the most relevant international commercial terms (Incoterms), prepare a letter to your client providing the various methods and costs for transporting the safes. Suggest the most appropriate method of transportation, and provide transit times from Detroit Michigan to Shanghai, China. Assume that China Safe Distributors does not have any experience in this area and that it will be necessary for you to explain the responsibilities of all of the parties for your final recommendation and support your selection.

Q 3. What documents will be necessary for this shipment? Provide a brief description of the purpose and use of each document as well as the party responsible for creating the document.

Q 4. Assume that China Safe Distributors agreed to CIF terms. Detroit Mini Safe arranged for transportation by XYZ Ocean Carriers and purchased an “all risk” insurance policy from an American surety company. The 2500 Model 1505 Mini Safes were loaded into a container and placed onboard a U.S. flag vessel on June 1. Twenty-four hours after sailing, the vessel was hit by bombs from a terrorist attack. Because of the damage, the vessel sank to the bottom of the ocean. Evaluate the possible legal ramifications for each party resulting from the loss of the cargo.

Write the answers in about 3- pages in a Microsoft Word and Submit your document to the Discussion Area by Saturday, February 6, 2016

All written assignments and responses should follow APA rules for attributing sources.


Assignment 2: Course Project Task V


International Finance, Documentary Requirements, and Logistics

In this module, you will research information related to international finance, documents, and logistics.

Without financial resources, your company will not be able to purchase goods and services. In your opinion, how does a company finance international transactions?

When dealing with foreign countries, financial transactions can be risky. Before your company ships goods to a company located in La Republica de Caspa, you need to ensure that the foreign country will pay your company for the goods. Similarly, if your company orders goods from a company located in Russavia, you need to ensure that your company will receive the products it ordered instead of boxes filled with rocks.

Research letter of credit transactions, the uniform customs and practice for documentary credits (UCP), sources of trade financing, and other topics related to finance. Interview someone involved in international finance at your company. Prepare a paper evaluating the various methods of financing and the risks of financial transactions when buying and selling goods and services to foreign countries.

In addition, research the documents involved in international transactions. Provide the names and purposes of the most important documents. Analyze what are the legal requirements for these documents? Relate the use of Incoterms to import and export contracts. Considering the audience of your practical guide, include copies of documents for reference in your guide.

The final part of this module’s paper should address the transportation of goods. What laws govern the transportation of goods from one country to another? Analyze the roles and responsibilities of the buyer, seller, carrier and freight forwarder? Evaluate which party is liable in the event goods are damaged in transit. Interview someone from risk management at your company to obtain information related to insurance and risk management.

Also, analyze how finance, documents, and logistics are affected by culture, ethics, and e-commerce. Make note of any pending regulations or laws that could affect your company in the future.

Write a 2– pages paper showing your research on finance, documentary requirements, and logistics. Include links, references, and sources you have used and follow the proper guidelines for citing legal texts. Also provide a statement regarding which specific topics related to your research would be appropriate for inclusion in the International Business Law and Practices Guidelines document you are developing. Provide a rationale for your decisions.

Present your work in Microsoft Word document format and submit it to the

Discussion Area by Monday, February 8, 2016.


All written assignments and responses should follow APA rules for attributing 

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