Gary, Apparntly that will change. Lets change the discussion to CBQI. Several important details have not been disclosed.
Assume someone is sincerely interested in purchasing a lot of Computers for Retail sale in the U.S. Is CBQI in a position to offer consignment? Or would CBQI want FOB?
There are multiple options for international trade. The most secure method for the Chinese is to request that CBQI engage in signing an irrevocable letter of credit. This method, while offering greatest security to the manufactures, would be the least attractive to CBQI. It requres that CBQI make funds available prior to shipment(Deposited in International Account) which can later be released to the Chinese after CBQI inspects and takes custody of the merchandise.
It will limit CBQI's ability to import mass quantities of PCs for resale in the U.S.(Limited to CBQI's Credit). If the Chinese are interested in Mass Distribution then it would be better if CBQI were provided consignment options. This will allow CBQI to import and store PCs until retail markets are opened. This option will clearly be least beneficial to the Chinese in the short term with greator long term success.
If consignment options are not on the horizon, and CBQI remains in a cash strapped position, then this planed distributorship is facing uphill battles. Again, assuming someone is sincerly interested in purchasing a lot for retail sale, How would CBQI handle the order?
Bix
AI
