Shoe Maker Interview Question:

What is FOB Free On Board Purchase Term?

Submitted by: Muhammad

When you negotiate a shoe price you need be clear on where the finished shoe is to be delivered. In most cases the shoe price will be stated as FOB (the nearest freight harbor). In south China it would be FOB Yantian. So the seller is responsible for the inland trucking the goods to the the freight terminal. (see Ex-Works Price)
Submitted by: Muhammad