Centralland Cheese Case Study

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MAINLAND CHEESE:
Product History:
Mainland is one of the most popular and awarded cheese brands in New Zealand, It has started in the year since 1955 carrying the legacy in producing taste and quality. The tradition and practices were handed down to the craftsmen’s from generations. The high quality cheese is made from the milk produced from New Zealand farms. It comes with different flavours. The standards and quality ere proven since ages and helped it to expand its footsteps from New Zealand to Australia, Asia and the pacific islands. Mainland cheese is a product of Fonterra a co-operatively owned indigenous New Zealand company. Fonterra
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It does states that the exporter should refund the advance payment if the goods are not in expected quality.

Standby letter of credit - This is one of the major strategies used in international trade. Letter of credit will be issued by the importer’s bank towards exporter’s bank confirming the payment of the stated export transaction.

Insurance - There are several insurance covers which will safe guard the importer and the exporter from the hazards which can cause negative affect for the stated export transaction. Insurance schemes which will cover the risks such as loss of goods, credit risk are some of the insurance schemes used in international trade which will help both importer and exporter to engage in an effective export transaction.

Hedging – This is a strategy which mainly used to protect the exporter from price fluctuations. Price fluctuations will have a major influence on the organization’s profitability. The future price changes in goods will make a negative impact on the organization. Hedging can be utilized in order to safeguard the exporter from these negative influences. Apart from this hedging is also used for the purpose of purchasing or selling goods in the correct time
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The seller’s fulfils its obligations when the goods have passed the stage of shipment. The main obligation for the seller in this method is that the seller has to deliver the goods into a designated port by the buyer.

Cost and Freight (CFR) – In this method the obligations which should undertake by the seller is more than the FOB method. The carriage of exported goods by sea should arrange by the seller. The seller should also provide the documents which is necessary for the buyer to clear the exported goods from the designated courier service.

Cost Insurance and Freight (CIF) - This method can be considered as somewhat equal to CFR. The exporter has to undertake the responsibility of arranging the carriage of exported goods and provide the documents to the importer which helps the importer to clear the goods from the courier. In this method the exporter has to undertake the responsibilities of clearing the goods from the designated

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