Section 1 The formation of price in international business negotiations
1.1 Introduction of price terms in brief
The 11 Inco terms 2010 are arranged into the following two distinct groups:
Group One: Rules for Any Mode or Modes of Transport
CIP- Carriage and Insurance Paid
CPT-Carriage Paid To
DAP-Delivered At Place
DAT-Delivered At Terminal
DDP-Delivered Duty Paid
EXW-Ex Works
FCA-Free Carrier
Group Two: Rules for Sea and Inland Waterway Transport Only
CFR-Cost and Freight
CIF-Cost, Insurance and Freight
FAS-Free Alongside Ship
FOB-Free On Board
1.2 Determinants of the price in international business negotiations
During the process of price negotiating, it’s better to identify the specific determinants that affect the price:
1) market situation, 2) interest demand, 3) delivery time, 4)complexity of the product, 5) the goods condition, 6) attached conditions and service, 7) reputation of products and enterprise, 8) payment. The following are the brief explanation of the main factors.

