Final answer:
FOB (Free On Board) cost is a term used in international trade to refer to the cost associated with getting goods to the point of shipment. It does not cover import duty, trims and packaging, and labor cost of apparel assembly.
Step-by-step explanation:
FOB (Free On Board) cost is a term used in international trade, specifically in relation to the sale and transportation of goods. It refers to the cost associated with getting the goods to the point of shipment, such as the cost of production, handling, and transportation to the port of export. FOB cost does not cover certain expenses, including:
- Import duty: This is a tax imposed by a government on imported goods. It is usually the responsibility of the buyer to pay the import duty.
- Trims and packaging: These are additional materials used in the packaging and presentation of the goods, such as labels, tags, and boxes. These costs are not included in the FOB cost.
- Labor cost of apparel assembly: If the goods being exported are apparel, the labor cost associated with the assembly of the garments is not covered by the FOB cost.
Therefore, the correct answer is B. Import duty, C. Trims and packaging, and D. Labor cost of apparel assembly are not covered by the FOB cost.