Distinguish between the following terms of sales as used in international trade. (4 mks)
(i) Free on rail (FOR)
Price quoted includes expenses for transporting the goods up to the nearest railway station. The buyer meets railway charges and all other expenses.
(ii) Free on board (FOB)
Price quoted includes the movement of goods up to when they are in the ship. The buyer meets all the other expenses.
(iii) In bond
Price quoted includes all the expenses up to handling the goods into the exporters bonded warehouse. The buyer / importer meets all other charges such as duty and storage.
(iv) On nearest offer (ONO)
The exporter is willing to accept the quoted price or any other nearest to the quoted one.
Business Studies Notes Form 1 - 4
Atika School Team