________ is a term used to indicate that the supplier is responsible for all the costs and risks until the goods are placed in or on the vessel at the loading point, and ________ covers all costs and risks of apparel manufacturing, ocean insurance policies, and freights, until the goods reach the point of destination that the sourcer designated.
a. FOB, CNF
b. FOB, LDP
c. FAS, LDP
d. FOB, CIF
Question 2
Which of the following is true?
a. When a sourcing contract is agreed in a FOB term, the sourcer must arrange international shipping and clearance of U.S. Customs once the goods arrive at the sourcer's country.
b. When a sourcing contract is agreed in a CIF term, the sourcer must purchase an insurance policy of ocean shipments.
c. When a sourcing contract is agreed in a LDP term and the goods were damaged during the ocean shipment, it is the sourcer's responsibility to claim the insurance and reimburse the loss of the goods from the insurance company.
d. When a sourcing contract is agreed in a FAS term, it is the supplier's responsibility to make a duty payment to the U.S. Customs once the goods arrive at the sourcer's country.
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