1) What steps would you take to effectively implement the budget into a team environment?

2.What are INCOTERMS? Describe the following INCOTERMS codes.

·Departure (Group E) FCA - Free Carrier

· Main Carriage Paid By Seller (Group C) CIF - Cost, Insurance And Freight

·Arrival (Group D)

·DAF - Delivered At Frontier

3.What is the trades practice Act?

4.What is the Warsaw Convention?

 

What steps would you take to effectively implement the budget into a team environment?

 

Answer:

Budgeting is the term and process of creating a plan to spend your money. And this spending plan is called a budget. And creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. And by budgeting is simply balancing your expenses with your income.

 

The following are the steps that you would take to effectively implement the budget into a team environment as follows;

1. Aids in the planning of actual operations

The process gets managers and teammates to consider how conditions may change and what steps they need to take, while also allowing managers to understand how to address problems when they arise.

 

2. Coordinates the activities of the organization

And budgeting encourages managers to build relationships with the other parts of the operation and understand how the various departments and teams interact with each other and how they all support the overall organization.

 

3. Communicating plans to various managers and teammates

And by communicating plans to managers and teammates is a vital and important social aspect of the process, which ensures that everyone gets a clear understanding of how they support the organization.And it encourages communication of individual goals, plans, and initiatives, which all roll up together to reinforce the growth of the business. And it also ensures or ensures appropriate individuals are made accountable for implementing the budget.

 

4. Motivates managers and your teammates to strive to achieve the budget goals

And the certain budgeting gets managers to focus on participation in the budget process. And it provides a challenge or target for individuals and managers by linking their compensation and performance relative to the budget.

 

5. Control activities

And the managers can compare actual spending with the budget to control financial activities.

 

6. Evaluate the performances of managers and teammates

Budgeting provides a means of informing managers and teammates of how well they are performing in meeting targets they have set.

 

 

 

Question:

What are INCOTERMS?

 

Answer:

The INCOTERMS are a set of simple three-letter codes which represent the different ways international shipments may be organized. And they allow sellers and buyers from different cultures and legal systems to decide at what point the ownership and paying for freight, insurance, and customs costs transfer from one to the other.

To alleviate commerce around the world, the International Chamber of Commerce (ICC) publishes a set of Incoterms, officially known as international commercial terms. And the globally perceive the Incoterms prevent confusion in foreign trade contracts by clarifying the obligations of buyers and sellers. And the parties intricate in domestic and international trade commonly use them as a kind of shorthand to help understand one another and the exact terms of their business arrangements. And some Incoterms apply to any means of transportation; others apply strictly to transportation across the water.

The International Chamber of Commerce (ICC) manage and developed Incoterms in 1936 and updates them periodically to conform to changing trade practices. And the ICC's mission is to promote open markets and ensure global economic prosperity through trade.And since it is a networked business organization that outstretch over 6 million businesses in 100 countries, the ICC is seen as having unparalleled expertise in establishing rules to guide international trade. And although the constancy to its Incoterms is voluntary, the ICC-established rules are commonly used by buyers and sellers as a regular part of trade transactions. And the Incoterms provide a universal set of rules and guidelines that help facilitate trade. In essence, they provide common language traders can use to set the terms for their trades. And buyers and sellers can use Incoterms in a variety of activities necessary to conduct business. And distinguishing the activities that call for the use of Incoterms include filling out a purchase order, labeling a shipment for transport, completing a certificate of origin, or documenting a free carrier agreement (FCA).

 

Question:

Describe the following INCOTERMS codes.

 

Departure (Group E) FCA - Free Carrier

 

Answer:

EXW or "Ex-Works" 

This refers to or means theat seller's only responsibility is to make the goods available at the seller's premises, i.e., the works or factory. And the certain seller is not in charge of loading the goods on the vehicle provided by the buyer unless otherwise agreed. And the buyer support the full costs and risk involved in bringing the goods from there to the desired destination. And the Ex - Works represents the minimum obligation of the seller.

 

The term free carrier (FCA) is a trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer. And when used in trade, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.

 

Main Carriage Paid By Seller (Group C) CIF - Cost, Insurance And Freight

Answer:

CFR - Cost and Freight

And the certain Seller must pay the costs and freight to bring the goods to the port of destination. And however, the risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.

 

CIF "Cost, Insurance, and Freight" 

And this is CFR with the additional requirement that the seller procures transport insurance against the risk of loss or damage to goods. And the seller must contract with the insurer and pay the insurance premium. And its insurance is generally important in international shipping because transport companies have restricted liability for loss or damage.

 

CPT "Freight/Carriage Paid To" or DPC. 

Ad this term means the seller pays the freight for the carriage of the goods to the named destination.Certainly, the risk of loss or damage to the goods and any cost increases transfers from the seller to the buyer when the goods have been delivered to the custody of the last or final carrier, and not at the ship's rail.And appropriately, "freight/carriage paid to" can being used for all modes of transportation, including container or roll-on roll-off traffic by trailers and ferries. . And when the certain seller is required to furnish a bill of lading, waybill, or carrier receipt, the seller duly fulfills its obligation by presenting such a document issued by the person engage with for carriage to the main destination.

 

 CIP "Freight/Carriage And Insurance Paid To" 

And this certainily refers also the abbreviated CIP) is the same as "freight/carriage paid to" but with the subsidiary requirement that the seller has to procure transport insurance against the risk of loss and damage to the goods throughout the carriage. And the seller contracts with the insurer and pays the insurance premium.

 

Arrival (Group D)

Answer:

DAF. "Delivered At Frontier"

This means and refers that the seller's obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country named in the sales contract. And the term is primarily used when goods are carried by rail or truck. And the seller bears the full cost and risk in delivering the goods up to this point, but the buyer must arrange and pay for the goods to clear customs.

 

DES "Delivered Ex-Ship" 

This means and refers to the seller makes the goods obtainable to the buyer on board the ship at the destination named in the sales contract. And the seller bears the full cost and risk involved in bringing the goods there. And the cost of unloading the goods and any customs duties must be paid by the buyer.

 

DEQ "Delivered Ex-Quay"

This refers and means the seller has agreed to make the goods available to the buyer on the quay or the wharf at the destination named in the sales contract. And the certain seller bears the full cost and risks in delivering the goods to that point including unloading. And there are two variations of ex quay contracts: "ex quay duty paid" and "ex quay duty on buyer's account." And in the first, the duty is paid by the seller. And in the second, the duty also is paid by the seller, but the buyer must reimburse the seller.

 

DDU "Delivery Duty Unpaid" 

The Delivered duty paid or Under these terms, the seller fulfills his obligation to deliver when the goods have been available to the buyer uncleared for import at the point or place of the named destination. And the seller bears all costs and risks involved in bringing the goods to the point or place of the named destination. And there is no obligation for import clearance.

 

DDP "Delivery/Duty Paid" 

This represents the seller's maximum obligation. And the term means "DDP." is generally followed by words indicating the buyer's premises. And it notes that the seller bears all risks and all costs until the goods are delivered. And this term means can being used notwithstanding of the mode of transport. And if the parties wish to make clear that the seller is not responsible for certain costs, additional words should be added (for example, "delivered duty paid exclusive of VAT and/or taxes").

 

Question:

What is the trades practice Act?

 

Answer:

Certainly, the Competition and Consumer Act 2010 (CCA) is an Act of the Parliament of Australia. And prior to 1 January 2011, it was known as the Trade Practices Act 1974.And this certain Act is the legislative vehicle for competition law in Australia, and seeks to promote competition, fair trading as well as providing protection for consumers. And it is manage and administered by the Australian Competition and Consumer Commission (ACCC) and also gives some rights for private action.And the purpose of the act is to intercept and prevent anti-competitive conduct, thereby encouraging competition and efficiency in business, and resulting in a greater choice for consumers and business and when they are the purchaser in price, quality, and service; and to safeguard the position of consumers in their commerce with producers and sellers and business in its dealings with other business. 

 

Question:

What is the Warsaw Convention?

 

Answer:

The Warsaw Convention was created in 1929 with 152 member states all over the world It specified the conditions under which the airline might be answerable for the death or injury to passengers, loss or damage to baggage, and delay; sets limits to the quantity of compensation that would be claimed, and excluded resort to national laws. And later on, the Warsaw convention was amended by the Montreal convention in 1999. It preserved most of the aspects of the Warsaw convention but the stress on consumer rights. The Montreal Convention is applicable to all or any international flights carrying passengers, cargo, or baggage. At the start paragraph of the article. 17 of the Montreal convention regulates the liability of the airlines just in case} of bodily injury or death of the passengers; "The carrier is answerable for damage sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the death or injury passed off on board the aircraft or within  the certain course of any of the operations of embarking or disembarking." First, it must be sure that the flight is working between member states, then the passenger who wants to assert compensation for the damages must try under the Montreal Convention. To be clear, when the convention is applicable, passengers cannot choose any action for damages under domestic law. to attain compensation, two things must be proven. And the first of all the damage that happened on-board of the aircraft or embarking or disembarking was an accident. Secondly, the plaintiff suffered bodily injury or death. However, the word bodily injury and accident are in explicit and are interpreted in several ways by the courts.