2(j). Cost of good in the factory in China: US$ 200,000.00

Destination is Africa, Cape Town using sea freight, direct shipment from Shanghai to

Cape Town

Inland Freight: US$ 5,000.00 via lorries to port

Freight charges by sea: US$10,000.00

Insurance: US$300.00

Freight forwarder charges: US$500.00

Crane use for lifting goods to the ship: US$800.00

Calculate:

i). FOB terms.

ii). CIF terms

iii). FAS terms.

iv). If there is an accident at the port of loading up the goods on the way to the buyer:

under FOB, who is responsible: Buyer or Seller.

v). Under CIF charge: Who is responsible: Buyer or seller?

vi). Under FAS charge: Who is responsible: Buyer or seller?