Many Chief Financial Officers and exporters make the critical mistake of calculating their international selling price by simply adding the transport cost to the production cost without evaluating the real impact of the Incoterm... Lee este artículo en español en Aula Mercantil: El error oculto del exportador: Por qué el Incoterm define tu margen de beneficio neto . The Exporter's Hidden Error: Why the Incoterm Defines Your Net Profit Margin Many Chief Financial Officers and exporters make the critical mistake of calculating their international selling price by simply adding the transport cost to the production cost. They believe that if they sell on CIF (Cost, Insurance and Freight) terms instead of FOB (Free on Board) , their net margin remains untouched because the customer "pays for the freight one way or another." This assumption is mathematically false. The selected Incoterm is not just a logistical delivery cl...
Mastering Trade, Logistics & Finance.