An Importer in Germany Requests a Price Quotation from a Cotton

question 21

Multiple Choice

An importer in Germany requests a price quotation from a cotton broker in Memphis. The broker wishes to place the cotton in the hands of a multimodal terminal operator in Memphis for shipment through the port of New Orleans. He will pay the freight charges through to the German seaport, but he wishes the risk of loss to the cotton to pass to the German importer as soon as he places the cotton in the hands of the multimodal terminal operator in Memphis. The broker should quote his prices for the cotton:

• A) CIF Germany.
• B) FOB New Orleans.
• C) CPT New Orleans.
• D) Ex Factory.
• E) None of the above.

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Definitions:

Tend-and-befriend Response

A stress response model proposing that people, particularly women, seek social alliances and support rather than fight or flight.

Positive Emotions

Feelings that are perceived as pleasant or desirable, such as joy, love, and gratitude, which can contribute to one's overall well-being and happiness.

Optimal Level

The most advantageous or effective state or degree of something for a specific purpose or outcome.

Fight-or-flight Response

A physiological reaction to perceived harm or threat, mobilizing the body for fighting or fleeing.