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Secrets of International Trade


How to Calculate
Costing for Export?

  A key tasks of an exporter is to calculate the price that the foreign buyer has to pay for his product.  


Part 1/3
The export cost-plus method of pricing will ensures that you will be selling at a profit.

The most usual form of export price quotation is C.I.F. and a named foreign port. This means that the exporter is responsible for paying all costs until the goods arrive at the foreign port.



Part 2/3
Export Price Competitiveness and how to calculate export price quotation?

To make the product more attractive to foreign buyer, exporters sometimes quote F.O.B. price and a named foreign port or city. For example, a Japanese firm may quote F.O.B. Hamburg price to its European customers.


Part 3/3
How to do costing in your local currency and convert to foreign currency for export pricing?

Price are usually quoted in U.S. dollars. The foreign importer can then calculate his landed cost for the product by adding to the C.I.F. price quoted, the import duty, local taxes and local transportation costs.


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