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rier Dock at Port of Shipment Vessel United States Copyright 169。 2020 by Harcourt, Inc. All rights reserved. 119 Selected Trade Terms CFR CIF (Named Port of Destination FAS (Named Port of Shipment) DDU / DDP (Named Place of Destination) Inland Carrier Dock at Port of Destination Vessel Country of Destination Destination Copyright 169。 2020 by Harcourt, Inc. All rights reserved. 1110 Distribution Adjustment to Decrease Price Escalation Producer Import Agent Processing and Packing Plant Primary Wholesaler Intermediary Wholesaler Small Wholesaler Retailer Producer Import Agent Processing and Packing Plant Retailer Depots Distribution Wholesalers Distribution Centers A. Retail Price: 170 yen/300g package B. Retail Price: 128 yen/300g package A. Conventional Route B. Restructured Route Savings of 25% by restructuring Source: Michael R. Czinkota, “Distribution of Consumer Products in Japan: An Overview,” International Marketing Review 2 (Autumn 1985): 3951. Copyright 169。 2020 by Harcourt, Inc. All rights reserved. 1111 Negotiating Terms of Payment ?Considerations ? The amount of payment and the need for protection ? Terms offered by petitors ? Practices in the industry ? Capacity for financing international transactions ? Relative strength of the parties involved Copyright 169。 2020 by Harcourt, Inc. All rights reserved. 1112 The Letter of Credit ?Irrevocable versus revocable ? irrevocable letter cannot be cancelled, guaranteeing payment ?Confirmed versus unconfirmed ? . bank confirms letter, assumes collection risk ?Revolving versus nonrevolving ? Most letters are nonrevolving good only for a single transaction. Copyright 169。 2020 by Harcourt, Inc. All rights reserved. 1113 Foreign Bank . Company . Bank Foreign Company 1 2 3 4 5 6amp。7 Product exported Import / Export Trade Fina