ABC LtdEnters into a Contract on the Sale of a Filing

question 18

Essay

ABC Ltd.enters into a contract on the sale of a filing cabinet,which was located in their Halifax warehouse.If the filing cabinet was destroyed while being transported from Halifax to the purchaser's business premises in Moncton,who would bear the loss if the terms of the contract were:
(a)FOB Halifax
(b)COD
(c)CIF Moncton

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Definitions:

Export Supply Curves

Graphical representations showing the relationship between the price of a good on the international market and the quantity of the good that a country is willing to export.

Import Demand Curves

Graphical representations that show the quantity of goods a country is willing to import at different price levels.

Upsloping

Describes a line or curve on a graph that moves higher as it goes from left to right, indicating an increase in the variable being measured.

Production Possibilities

A concept in economics that describes the different combinations of goods and services that can be produced given fixed resources and technology.