Overview
The list with the specific country (CHINA), specific US state (Pennsylvania), and specific company (Crayola) which you have been assigned for the course is in Module 1.
Instructions
Your manager’s memo to you is below. In it, your manager gives you several tasks to perform. You are expected to use available resources to develop a thorough and accurate response. Your report should start with a standard business heading and format. It should be written in complete sentences. The Example GM-Challenge Business Report (attached) in Module 1 shows a business report with its parts.
Structure your business report as follows:
Heading - Use a standard business heading
Purpose Statement - State the report's overall purpose in your own words in an initial paragraph. This statement tells your manager why s/he is receiving a report from you and what info was requested of you.
Task Responses - Next, respond to each of the assigned tasks in sequence, numbering your responses accordingly. For each task:
* Restate the Overall Task: Begin by restating the overall task in your own words (what the task is) to verify your understanding of it to your manager.
* Respond to Each Part of the Task: Complete responses include (A/B/C) as indicated:
(A.) Written responses that summarize relevant source info and/or justify your thinking,
(B.) Legible supporting images that show the relevant source info used, and
(C.) Weblinks directly to the relevant source info so your manager can easily retrieve it.
* Note: The letters (A/B/C) will be used in your manager’s memo as a reminder to include them.
Legible supporting images are a key part of your response. These images do not replace your written answers, they only show the relevant source info used. The supporting images should be visible in your report, not included as files. Screenshot or screen clip them into your response. Details on how to insert a supporting image into your GM-Challenge using the screenshot or screen clipping tools can be found HERE. Supporting images should be legible so stretch them to make them fit the width of the page. Images should then be large enough to read.
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To: You - YOUR COMPANY'S Assistant Global Marketing Manager From: Tim Burr - YOUR COMPANY'S Global Marketing Manager Date: June 15, 2025 Subject: Export Quotation
YOUR COMPANY recently participated in an international trade show. Your sales representatives were pleased to meet several potential buyers. A foreign buyer located in YOUR COUNTRY has since requested a export price quote. This is a common first step in negotiating an export sale.
You have been tasked with providing some info for our management team to help complete the Export Quotation Worksheet for this sale. Accurate info is very important as it will serve as the foundation for YOUR COMPANY's export price quote. Ten specific tasks are provided below. Respond in a business report using the task numbers/letters and sequence provided. Your business report should include a heading, purpose statement, and complete responses to all tasks. Weblinks to sources you might find helpful are included in the italic font. If they are not functioning correctly, seek another resource.
The Export Quotation Worksheet is included (attached). It is an Excel spreadsheet. Open the file and enter the proper information in the yellow, pink, and blue boxes in the spreadsheet. (Yellow boxes should have the various costs, fees and taxes, etc. Pink boxes should have the Incoterm's geographic location. Blue boxes should have the Incoterm prices that are automatically calculated by Excel.) Keep all costs, prices and calculations in USD.
1. YOUR BUYER may request an ExWorks (EXW) price at YOUR COMPANY's business location in YOUR STATE. The price of YOUR PRODUCT is 35,000 USD. YOUR BUYER's order could be ready for shipment in about one month. It is packed in one 40' standard Full Load Container (FCL).
In US Dollars (USD), how much would the ExWorks (EXW) price for YOUR PRODUCT be?
Note: An ExWorks (EXW) price would be the price in USDs that YOUR BUYER would pay to YOUR COMPANY if they wanted to take possession of YOUR PRODUCT at YOUR COMPANY's business location in YOUR STATE. YOUR BUYER would then make all further arrangements to get YOUR PRODUCT to their business location for themselves.
a. YOUR COMPANY charges a 350 USD loading fee per container. Add the price of YOUR PRODUCT and the container loading fee to the Export Quotation Worksheet.
b. State the ExWorks (EXW) price in USDs for YOUR PRODUCT. Include an image of your Export Quotation Worksheet showing the EXW price calculation. (A/B)
2. Container ships are very large. They are loaded/unloaded in ports near the coast that handle shipping containers.
What would be a suitable container port in the US for YOUR COMPANY to use? What would be a suitable container port in (or near) YOUR COUNTRY for YOUR COMPANY to use?
a. Select a suitable US port near the coast that handles shipping containers. (If YOUR COMPANY is going to ship from the US West Coast, use the port of: Los Angeles, Long Beach, Seattle, or San Francisco. If YOUR COMPANY is going to ship from the US East Coast, use the port of: New York, Norfolk, Savannah, or Charleston. If YOUR COMPANY is going to ship from the Gulf of Mexico, use the port of: Houston, New Orleans, or Mobile.) The “World Sea Ports” tool on the SeaRates website HERELinks to an external site. will help. You need a port with a "Container Terminal" which means they can handle shipping containers. Once the US is selected on the website, the ports with a Container Terminal are identified in red. (A/B/C)
b. Select a suitable port for shipping containers on the coast in or near YOUR COUNTRY that is close to YOUR BUYER's business location. (This port will be referred to as the foreign port.) The “World Sea Ports” tool on the SeaRates website HERELinks to an external site. will help. You will need a port with a "Container Terminal" which means they can handle shipping containers. Once YOUR COUNTRY is selected on the website, the ports with a Container Terminal are identified in red. (A/B/C)
3. YOUR BUYER may request a Free Along Side (FAS) price at the US port you selected. To determine this price, YOUR COMPANY needs to identify service providers and estimate the costs for US land transportation and land cargo insurance from YOUR COMPANY's business location in YOUR STATE to the US port you selected.
What would be a suitable trucking company in YOUR STATE and how does YOUR COMPANY contact it? What would be a suitable land cargo insurance company in YOUR STATE and how does YOUR COMPANY contact it? What is the distance from YOUR COMPANY's location to the US port you selected? In US Dollars (USD), how much would the Free Along Side (FAS) price for YOUR PRODUCT be?
NOTE: A Free Along Side (FAS) price would be the price in USDs that YOUR BUYER would pay to YOUR COMPANY if they wanted to take possession of YOUR PRODUCT at the US port you selected. YOUR BUYER would then make all further arrangements to get YOUR PRODUCT to their business location for themselves.
a. Provide the name and contact info (i.e., phone number, email address, etc.) for a regional trucking company operating in YOUR STATE. (A/B/C) Provide the homepage for that trucking company. (B/C)
b. Provide the name and contact info (i.e., phone number, email address, etc.) for an insurance company that provides land cargo insurance in YOUR STATE. (A/B/C) Provide the homepage for that insurance company. (B/C)
c. Provide a map showing the trucking route from YOUR COMPANY's location to the US port you selected. Determine the distance in miles. (A/B/C)
d. Determine the cost of US land transportation. For US land transportation, use a cost estimate of 3.00 USD per mile. Note: There is a 300 USD minimum for US land transportation. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
e. Determine the cost of land cargo insurance. For land cargo insurance, use a cost estimate of 2% of the price of YOUR PRODUCT. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
f. State the Free Along Side (FAS) price in USDs for YOUR PRODUCT at the US container port you selected. Include an image of your Export Quotation Worksheet showing the FAS price calculation. (A/B)
4. There are many container shipping companies. YOUR COMPANY would like to know some options that are available as that might provide some flexibility with regard to scheduling.
What are two container shipping companies that provide service between the US port you selected and the foreign port in YOUR COUNTRY you selected? Do these container shipping companies offer container tracking services so our company can monitor the location of our shipment? What additional support (i.e., value-added) services does each of these container shipping companies offer?
a. Provide the name and contact info (i.e., phone number, email address, etc.) for two container shipping companies that provide service between the US port you selected and the foreign port in YOUR COUNTRY you selected. (A/B/C) Provide the homepage for those container shipping companies. (B/C) The container shipping companies that serve various ports can be found using the “Sea Lines Explorer" tool on the SeaRates website HERELinks to an external site.. Once you select both the US and the foreign port, a search will identify the container shipping companies that serve these ports.
b. Indicate whether these container shipping companies offer container tracking services? (A/B/C)
c. Indicate additional support (i.e., value-added) services provided by each of these container shipping companies. (A/B/C)
5. YOUR BUYER may request a Cost/Insurance/Freight (CIF) price at the foreign port in YOUR COUNTRY you selected. To determine this price, YOUR COMPANY needs to estimate the costs for ocean transportation and marine cargo insurance from the US port you selected to the foreign port in YOUR COUNTRY you selected.
What is the approximate transit time for ocean shipping between the US port you selected and the foreign port in YOUR COUNTRY you selected? In US Dollars (USD), how much would the Cost/Insurance/Freight (CIF) price for YOUR PRODUCT be?
NOTE: A Cost/Insurance/Freight (CIF) price would be the price in USDs that YOUR BUYER would pay to YOUR COMPANY if they wanted to take possession of YOUR PRODUCT at the foreign port in YOUR COUNTRY you selected. YOUR BUYER would then make all further arrangements to get YOUR PRODUCT to their business location for themselves.
a. Provide a map showing the shipping route from the US port you selected to the foreign port in YOUR COUNTRY you selected. (B/C) Determine the distance in miles and approximate transit time. (A/B/C) Use the Distance & Time tool HERELinks to an external site. on the SeaRates website to obtain the distance and approximate transit time in days between the two shipping ports.
b. Determine the cost of ocean transportation. Add this info to the Export Quotation Worksheet. (A/B/C) Use one of the following two approaches. Use a freight quote tool like the "Logistics Explorer" HERELinks to an external site. on the SeaRates website to obtain an approximate price range in dollars and transit time in days between the two shipping ports. If that tool does not provide a shipping rate, use the "Ship Schedules" tool HERELinks to an external site. on that same website to get some options for shipping lines and transit time. Using a shipping date some weeks in the future may help. Note: Be sure to use a shipping port that handles containers, not an airport, or just a point in the city.
Note: Registration is NOT required to access any info required to complete an assignment. Companies will want you to register but it is not required by me.
If the SeaRates website does not provide you with results, some estimated shipping rates can be obtained at the MoverDB.com website HERELinks to an external site.. Do not request a quote. Go to the lower part of the webpage and there are some estimated shipping rates for containers between the East/West Coast of the US and many foreign countries.
c. Determine the costs of marine cargo insurance. For marine cargo insurance, use a cost estimate of 10% of the price of YOUR PRODUCT. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
d. State the Cost/Insurance/Freight (CIF) price in USDs for YOUR PRODUCT at the foreign port in YOUR COUNTRY you selected. Include an image of your Export Quotation Worksheet showing the CIF price calculation. (A/B)
6. In addition to expected costs and transit times, YOUR COMPANY would like to be comfortable with the level of risk to their timeline. Waterways near ports can become congested creating delays. Port congestion is the expected delay your container ship may face upon arriving at a port.
How busy does the ship traffic around the foreign port in YOUR COUNTRY appear to be? Is port congestion causing delays at the foreign port you selected and if so what are typical number of days of delay in recent weeks? Does ship traffic and/or potential delays impact your interest in shipping to this foreign port?
a. Discuss how dense the ship traffic is around the foreign port in YOUR COUNTRY. Visit Shiptraffic.net, the website monitoring ship traffic HERELinks to an external site.. Select the body of water (i.e., strait, canal, gulf, bay, sea, etc.) near the foreign port in YOUR COUNTRY. Zoom in close enough to see the ship traffic around the foreign port you selected. Each of the colored shapes on the map is a specific ship. (A/B/C)
b. Determine the expected delay in days at the foreign port you selected. Visit Gocomet.com HERELinks to an external site. and search for your foreign port. Get an estimate of delay due to port congestion in recent weeks. (A/B/C)
c. Discuss whether the ship traffic impacts your interest in shipping to YOUR COUNTRY through this specific port.
7. YOUR BUYER may request a Delivery Duty Paid (DDP) price at the port in YOUR COUNTRY you selected. To determine this price, YOUR COMPANY needs to estimate the import duty and value-added taxes imposed by YOUR COUNTRY for YOUR PRODUCT.
How much are the import duty and value-added taxes imposed by YOUR COUNTRY for YOUR PRODUCT. In US Dollars (USD), how much would the Delivery Duty Paid (DDP) price for YOUR PRODUCT be at the foreign port in YOUR COUNTRY you selected?
NOTE: The Delivery Duty Paid (DDP) price at the foreign port would be the price in USDs that YOUR BUYER would pay to YOUR COMPANY if they wanted to take possession of YOUR PRODUCT after it has passed through customs at the foreign port in YOUR COUNTRY you selected. YOUR BUYER would then make all further arrangements to get YOUR PRODUCT to their business location for themselves.
a. Determine the import tariff and value-added tax in USDs for YOUR COUNTRY. (A/B/C) Visit SimplyDuty.com, a company that tracks import duty and tax calculations HERELinks to an external site.. Complete the form using the costs and info you've determined. Use the HS code for YOUR PRODUCT you provided in the GM-Challenge 1. If the SimplyDuty.com website does not provide you with results, information on import tariffs and value-added tax rates may also be found in the US Country Commercial Guide HERELinks to an external site. under the "Customs, Regulations & Standards" tab.
b. State the Delivery Duty Paid (DDP) price in USDs for YOUR PRODUCT at the foreign port in YOUR COUNTRY you selected. Include an image of your Export Quotation Worksheet showing the DDP price calculation. (A/B)
8. Goods imported into a country must comply with that country's import requirements and documentation. YOUR COMPANY wants to avoid red tape or other delays. Customs brokers are companies that specialize in the import process.
What are the import requirements for YOUR COUNTRY? Which specific import documents are needed for YOUR COUNTRY (i.e., how many and which ones)? Provide information for two customs brokers that have offices in YOUR COUNTRY.
a. Identify the import requirements and specific import documents that are needed for YOUR COUNTRY. Access the US Country Commercial Guide for YOUR COUNTRY HERELinks to an external site. and look under the "Customs, Regulations & Standards" tab for "Import Requirements and Documentation". (A/B/C)
b. Provide the name and contact info (i.e., phone number, email address, etc.) for two customs brokers with offices in YOUR COUNTRY. (A/B/C) (Note: Private companies are preferred.) Provide the homepages for those customs brokers. (B/C)
c. Indicate the services provided by each of these customs brokers. (A/B/C)
9. YOUR BUYER may request a Delivery Duty Paid (DDP) price at their business location. To determine this price, YOUR COMPANY needs to estimate the costs for land transportation and land cargo insurance from the foreign port in YOUR COUNTRY you selected to YOUR BUYER's business location.
What is the distance from the foreign port in YOUR COUNTRY you selected to YOUR BUYER's business location? In US Dollars (USD), how much would the Delivery Duty Paid (DDP) price for YOUR PRODUCT be at YOUR BUYER's business location?
NOTE: The Delivery Duty Paid (DDP) price at YOUR BUYER's business location would be the price in USDs that YOUR BUYER would pay to YOUR COMPANY if they wanted to take possession of YOUR PRODUCT after it arrived at their business location and no further arrangements are needed.
a. Provide the name and physical address of YOUR BUYER in YOUR COUNTRY. (A/B/C) Provide the homepage of YOUR BUYER. (B/C) Provide contact info for YOUR BUYER (i.e., phone number, email address, etc.). (A/B/C)
b. Provide a map showing the trucking route from the port in YOUR COUNTRY you selected to YOUR BUYER's business location. Determine the distance in miles. (A/B/C)
c. Determine the cost of land transportation in YOUR COUNTRY. For land transportation, use a cost estimate of 3.00 USD per mile. Note: There is a 300 USD minimum for land transportation in YOUR COUNTRY. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
d. Determine the cost of land cargo insurance in YOUR COUNTRY. For land cargo insurance, use a cost estimate of 2% of the price of YOUR PRODUCT. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
e. State the Delivery Duty Paid (DDP) price in USDs for YOUR PRODUCT at YOUR BUYER's business location in YOUR COUNTRY. Include an image of your Export Quotation Worksheet showing the DDP price calculation. (A/B/C)
10. The more responsibilities YOUR COMPANY takes on, the higher the price it will charge YOUR BUYER.
In US Dollars (USD), how much more expensive is the Delivery Duty Paid (DDP) price for YOUR PRODUCT at YOUR BUYER's business location than the ExWorks (EXW) price at YOUR COMPANY's business location in YOUR STATE?
a. Determine how much the price increased. Show your calculation. (A/B)
b. Discuss which cost, fee, tax, etc. had the greatest impact on the price increase.
c. Provide an image of the entire Export Quotation Worksheet all completed. (A/B)