3. International Commercial Terms
3.1 Free on Board (FOB)
3.2 Cost and freight(CFR)
3.3 Cost, insurance and freight(CIF)
3.4 Delivered at Place (DAP)
3.5 Free Alongside Ship (FAS)
3.6 Free Carrier(FCA)
3.7 Ex Works(EXW)
3.8 Delivered at Terminal (DAT)
3.9 Delivered Duty Paid (DDP)
3.10 Cost Insurance Paid to (CIP)
3.11 Carriage Paid to (CPT)
What INCOTERMS Are?
• INCOTERMS are a set of three-letter standard
trade terms most commonly used in international
contracts for the sale of goods. First published in
1936, INCOTERMS provide internationally
accepted definitions and rules of interpretation
for most common commercial terms. In the US,
INCOTERMS are increasingly used in domestic
sales contracts rather than UCC (Uniform
Commercial Code) shipment and delivery terms.
WHAT INCOTERMS DO?
• INCOTERMS inform the sales contract by
defining the respective obligations, costs
and risks involved in the delivery of goods
from the Seller to the Buyer.
WHAT INCOTERMS DO NOT DO?
•
•
•
•
INCOTERMS by themselves DO NOT:
Constitute a contract;
Supersede the law governing the contract;
Define where title transfers; nor,
Address the price payable, currency or credit terms.
These items are defined by the express terms in the
sales contract and by the governing law.
What is the importance of Incoterms?
• The purpose of Incoterms is to precisely define three
aspects for international trade:
• The allocation of logistics costs between sellers and
buyers.
• The transmission of risks in transporting the goods.
• The documents and customs formalities necessary for
export and import operations.
• The importance of Incoterms is because of its
widespread use that makes them internationally
known. Therefore, all professionals involved in foreign
trade should understand Incoterms: exporters and
importers, carriers and freight forwarders, customs
brokers, insurers, international credit professionals,
sales and purchasing managers, consultants, etc.
Why Incoterms
Incoterms define risk,
cost and responsibility
for both the seller and
the buyer during the
transportation of the
cargo from the exporter
to the importer
Incoterms are universal
and can be recognised
and understood
internationally.
•The International
Commercial Terms were
drawn up by the ICC
(International Chamber of
Commerce)in 1936
•These rules for
international trade are
used internationally to
settle trade disputes
between sellers and buyers
Incoterms are Legally binding
Incoterms are legally binding and the following must be given
consideration:
•Which party will pay the costs to move the goods from
the seller to the buyer?
•Which documents will be required and at whose
expense?
•At what point will the risk, to which the goods may be
subjected to, transfer from the seller to the buyer?
•Which party, the exporter or importer, will be responsible
for the creation of the contract of carriage?
Named port or place
• There are 13 Incoterms and they range from the least amount
of risk, cost and responsibility for the seller, to the most.
• In keeping with this an Incoterm must always be followed by a
named port or place.
– This must be quoted on the quotation, defining the port or
place of receipt and or final destination.
Example: FCA OR TAMBO SOUTH AFRICA USD 150 000.
Important changes for 2010:
• 11 terms of delivery instead of 13
– DAF, DES, DDU and DEQ have been removed
– DAP and DAT are new and have been added
• Container arrival costs are not expressed (ex: THC – terminal
Handling charges and other destination charges)
• Exact cost transfer points need to be addressed elsewhere in the
contract
• DAT is the only term that specifically tasks the seller with unloading
• FOB changed to on board vessel (‘ship’s rail’ reference removed)
PRACTICE POINTS
• BE SPECIFIC: If you use INCOTERMS in the Sales Contract or
Purchase Order, you should identify the appropriate
INCOTERM Rule [e.g. FCA, CPT, etc.], state “INCOTERMS 2010″
and specify the place or port as precisely as possible.
• RECOGNIZE WHERE THE RISK OF LOSS TRANSFERS: A common
misconception when the Seller pays the freight is that the
Seller has the risk of loss until the goods are delivered to the
place or port specified on the bill of lading or airway bill.
Actually, when using INCOTERMS CPT, CIP, CFR or CIF, risk
transfers to the Buyer when the Seller hands the goods over
to the carrier at origin, not when the goods reach the place or
port of destination.
• Understand that under CIP and CIF, the Seller is only obliged
to obtain insurance on minimum cover.
• UNDERSTAND WHO HAS RESPONSIBILITY FOR LOADING
AND UNLOADING CHARGES. FOR EXAMPLE: DAT
obliges the Seller to place the goods at the Buyer’s
disposal after unloading at the named terminal at port
or place of destination.
• DAP and DDP oblige the Seller to place the goods at
the Buyer’s disposal on the delivering carrier ready for
unloading at the named place of destination.
• CPT, CIP, CFR or CIF on the other hand, require the
parties to identify as precisely as possible the point at
the agreed port of destination because the costs up to
that point are for the account of the Seller.
• Under FCA terms, the seller satisfies his obligation to
deliver when he has handed over the goods, cleared
for export, into the charge of the carrier named by the
buyer at the named place or point. The buyer is
responsible for inland freight, unloading at port of
embarkation and loading on ocean carrier/airline.
• UNDERSTAND WHO HAS RESPONSIBILITY FOR U.S. CUSTOMS ENTRY
DECLARATIONS: DDP is the only INCOTERM where the Seller has
responsibility for U.S. Customs entry declarations.
• IMPORTANT NOTE: An important factor to be considered when asking the
Seller to be responsible for international carriage, is if the goods ship by
Ocean Freight, an Importer Security Filing (ISF) must be electronically
submitted to Customs 24 hours before the cargo is laden on the vessel
bringing the cargo to the U.S. The Buyer should specify in the contract
either (a) the shipper is responsible for the ISF or (b) the Seller is
responsible for providing the required data in a timely manner (i.e. 72
hrs before lading) to the Buyer’s appointed agent (e.g. Customs Broker). In
practice, when the broker and the international forwarder are unrelated
parties, this requirement is honored more in the breach than in the
observance. The Buyer responsible for customs entry should indemnify
against the penalties (US$5,000) for filing a late, inaccurate or incomplete
ISF. The ISF does not apply at this time to airfreight shipments
• DETERMINE THE IMPORTANCE OF SUPPLY CHAIN VISIBILITY When CPT, CIP,
CFR or CIF are used the Seller fulfills its obligation to deliver when it hands
the goods over to the carrier, not when the goods reach the place of
destination.
• DAT, DAP and DDP the Seller fulfills its obligation to deliver at the named
destination. The Seller has no obligation to provide transit status updates.
INCOTERMS
VENDOR
BUYER
FOB (Maritime only)
Tax Control
Warehouse
(Almacén Fiscal)
Vendor Plant
FREE CARRIER
CFR
(Maritime only)
CIF
(Maritime only)
Buyer Plant
(Maritime only)
EXWORKS
DAP
FAS
DAT
Group E:
Group D:
• EXW – Ex Works: at vendor’s plant
• DAP – Delivered at Place: Multimodal / Land carrier
Group F:
• DAT – Delivered at Terminal: Same as DAP but the shipper is
responsible for the load.
• FCA – Free Carrier: Land carrier
• FAS – Free Alongside Ship: At the shipping port
• FOB – Free On Board: On the Vessel. Maritime only.
Group C:
• CFR – Cost and Freight: At the arrival port (On board). Doesn’t include insurance. Maritime
• CIF – Cost Insurance and Freight: At the arrival port (On board). Includes insurance. Maritime
The buyer is responsible for the load.
• CPT – Carriage Paid To: Same as CFR but used for land/air freight
• CIP – Carriage and Insurance Paid To: Same as CIF but used for land/air freight
• DDP – Delivered Duty Paid: At the buyer’s plant (Insurance, cost and
freight included (Door to Door).
DDP
The Categories
Incoterms
Ex works
Free carrier
Free alongside ship
Free on board
Cost & freight
Cost, insurance & freight
Carriage paid to
Carriage and insurance paid to
Delivered at frontier
Delivered ex ship
Delivered ex quay
Delivered duty unpaid
Delivered duty paid
Code
EXW
FCA
FAS
FOB
CFR
CIF
CPT
CIP
DAF
DES
DEQ
DDU
DDP
E Terms
F Terms
C Terms
D Terms
DAF
• DELIVERED AT FRONTIER means the seller fulfils its
obligation to deliver when the goods have been
made available, cleared for export, at the named
point and place at the frontier, but before the
customs border of the adjoining country.
– The term "frontier" may be any frontier, not just the
country of export.
• For this reason it is important to precisely define the point and
place it in the term.
• DELIVERED AT FRONTIER requires the seller to clear
the goods for export.
• DELIVERED AT FRONTIER is intended to be used
when goods are to be carried by road or rail, but it
may be used for any mode of transport.
DES
• DELIVERED EX SHIP means the seller fulfills its
obligation to deliver when the goods have been
made available to the buyer on board the ship
uncleared for import at the named port of
destination.
• If the parties wish the seller to bear the costs and
risks of discharging the goods, then use the term
DEQ - DELIVERED EX QUAY.
• DELIVERED EX SHIP can only be used for sea or
inland waterway transport.
DEQ
• DELIVERED EX QUAY means the seller fulfils its obligation to deliver when
the goods are placed at the disposal of the buyer not cleared for import on
the quay (wharf) at the named port of destination.
– The seller has to bear costs and risks involved in bringing the goods to the
named port of destination and discharging the goods on the quay (wharf).
– The buyer clears the goods for import and pays for all formalities, duties, taxes
and other charges upon import.
• This is the opposite of the previous version of Incoterms.
• If the parties wish to include in the seller’s obligations all or part of the
costs payable upon import of the goods, this should be made clear by
adding explicit wording to this effect in the contract of sale.
• If the parties wish to include in the seller’s obligations the risks and costs of
the handling of the goods from the quay to another place (warehouse,
terminal, etc.) in or outside the port, then one of the following terms
should be used:
– DDU - DELIVERED DUTY UNPAID (... named place of destination)
– DDP - DELIVERED DUTY PAID (... named place of destination)
• DELIVERED EX QUAY can only be used for:
– Sea or inland waterway transport
– Multimodal transport
– Discharging from a vessel onto the quay (wharf) in the port of destination.
DDU
• DELIVERED DUTY UNPAID means the seller fulfills its
obligation when the goods arrive by any means of
transportation to the named place of destination.
– The seller has to bear the costs and risks involved in bringing the
goods thereto (excluding duties, taxes and other official charges
payable upon importation) as well as the costs and risks of
carrying out customs formalities.
– The buyer pays the duty.
– The buyer has to pay any additional costs and to bear any risks
caused by its failure to clear the goods for import in time.
• If the parties wish the seller to carry out customs formalities
and bear the costs and risks, or pay any taxes, this has to be
made clear by adding words to this effect.
• DELIVERED DUTY UNPAID can be used for all modes of
transport.
DDP
• DELIVERED DUTY PAID means the seller fulfills its obligation when
the goods arrive by any means of transportation to the named
place of destination.
– The seller has to bear the costs and risks involved in bringing the goods
thereto (including duties, taxes and other official charges payable upon
importation) as well as the costs and risks of carrying out customs
formalities.
– The seller pays the duty.
– DELIVERED DUTY PAID represents the seller's maximum obligation.
– The buyer has to pay any additional costs and to bear any risks caused
by its failure to clear the goods for import in time.
• DELIVERED DUTY PAID should not be used if the seller is unable to
obtain an import license.
• If the parties wish the seller not to carry out customs formalities
and bear the costs and risks, or not pay any taxes, this has to be
made clear by adding words to this effect.
• DELIVERED DUTY PAID can be used for all modes of transport.
The Steps of Global Logistics
Customs Clearance
for Export
3
2
1
Loading
4
Preliminary
Transportation
Handling
Outbound
5
Packing
6
Customs
Clearance
Duties
11
10
Unloading
Final
Transportation
9
Main
International
Transportation
8
Handling
Inbound
Insurance
7
Acronym (…named location)
Acronym dictates mode and where the lines are drawn
SELLER
Export
Clearance
Import
Clearance BUYER
Goods
PRE -CARRIAGE
Seller’s Risk
Seller’s Cost
MAIN CARRIAGE
ON-CARRIAGE
3.1 Free on Board (FOB)
• "Free on Board" means that the seller delivers when
the goods pass the ship's rail at the named port of
shipment. This means that the buyer has to bear all
costs and risks of loss of or damage to the goods
from that point. The FOB term requires the seller to
clear the goods for export.
• This term can be used only for sea or inland
waterway transport. If the parties do not intend to
deliver the goods across the ship’s rail, the FCA term
should be used.
• FOB: “Free on Board” Port of Departure.
– Exporter responsible for goods until they are on
the ship, then importer is responsible.
– Dividing point is ship’s rail.
• The rail around the deck that prevents you
from falling off the deck. Meaning, the 'edge'
of the ship, or to refer when goods are said to
be on board the ship.
FOB - Free on Board
INCOTERMS 2000
Free on board (FOB)
Named port of shipment
Sea Freight incoterm
Costs
Costs
Risks
Seller
Risks
Buyer
Under this term, the seller is responsible for delivering the goods on board
the ship at the named port of loading. The responsibility for, and risk of
damage to or loss of, the goods pass from the seller to the buyer when the
goods pass a ship’s rail.
FOB (…named port of shipment)
Seller
• clears export customs,
• delivers and loads goods on ship
• evidence of delivery
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
MAIN CARRIAGE
ON-CARRIAGE
Seller’s Risk
Seller’s Cost
Buyer
• nominates carrier,
• contracts carriage
• pays freight
FOB Example
FOB, New Orleans for 3 ice makers. You as the
exporter are responsible for all costs in delivering the
goods to New Orleans and loading the icemakers on
board a vessel named by the German firm. You are
responsible for arranging any export clearances
(licenses, taxed, fees). The German firm is
responsible for booking space for cargo and pays for
the ocean freight.
3.2 CFR - Cost and Freight
INCOTERMS 2000
Cost and Freight (CFR)
Named port of destination
Sea Freight incoterm
Costs
Costs
Risks
Seller
Risks
Buyer
The seller is responsible for paying the costs and freight to bring the goods to
the named port of destination. The risk of loss or damage to the goods is
transferred from the seller to the buyer when the goods pass the ship’s rail at
the port of loading.
CFR (…named port of destination)
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
Seller’s Risk
Seller’s Cost
MAIN CARRIAGE
ON-CARRIAGE
3.3 CIF - Cost, Insurance & Freight
INCOTERMS 2000
Cost, Insurance and Freight (CIF)
Named port of destination
Sea freight incoterm
Exporter procures marine insurance
Costs
Costs
Risks
Seller
Risks
Buyer
This term is the same as CFR, except the seller has to procure, and pay
for, marine insurance for the goods during their carriage.
CIF (…named port of destination)
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
Seller’s Risk
Seller’s Cost + Insurance
MAIN CARRIAGE
ON-CARRIAGE
3.4 Delivered at Place (DAP) (named place)
• Named place on buyer’s side
• Seller arranges export clearance, delivers export packed
goods to the named place of destination and pays all
transportation costs thereto
• Buyer arranges import clearance and on carriage
• Neither party is required to insure
• Transport mode: All Modes
3.5 FAS - Free Alongside Ship
Under this term, it is the seller’s responsibility to deliver the goods
alongside the ship on the quay in the port of loading, having cleared the
goods through Customs in the country of export. The buyer must bear
all the costs and risks from that point onwards
FAS (…named port of shipment)
Seller
• delivers goods alongside ship
• evidence of delivery
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
Seller’s Risk
Seller’s Cost
MAIN CARRIAGE
ON-CARRIAGE
Buyer
• export documents
• nominates carrier,
• contracts carriage
• pays freight
3.6 FCA - Free Carrier at
INCOTERMS 2000
Free carrier (FCA)
Named place
Multimodal incoterm
Costs
Risks
Seller
Charge of
Carrier
Costs
Risks
Buyer
The seller is responsible for delivering the goods into the custody of the transport carrier
at the named point, having cleared the goods through Customs in the country of export.
The responsibility for, and the risks of damage to or loss to the goods is transferred from
the seller to the buyer at this point. It is based on the same principle as FOB except that
the seller fulfils his obligations when s/he delivers the goods into the custody of the
carrier at the named point.
FCA (…named place)
Seller
• clears export customs,
• delivers goods to carrier
• evidence of delivery
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
MAIN CARRIAGE
ON-CARRIAGE
Seller’s Risk
Seller’s Cost
Buyer
• nominates carrier,
• contracts carriage
• pays freight
3.7 EXW - Ex Works
INCOTERMS 2000
Ex Works (EXW)
Named place
Multimodal Incoterm
Costs
Costs
Risks
Seller
Risks
Buyer
The seller makes the goods available, packed and ready for collection at the place of
receipt (factory). The buyer must bear all the risks and charges in taking the goods to
the required destination. This term carries the minimum obligation for the seller.
E Terms: Departure
 EXW (named place)
Under E-terms, the seller minimizes his
risk by only making the goods available
at his own premises.
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE -CARRIAGE
Seller’s Risk
Seller’s Cost
MAIN CARRIAGE
ON-CARRIAGE
EXW = Ex Works
The seller fulfills his obligation to deliver
when he has made the goods available at his
premises to the buyer.
The seller is not responsible for loading the
goods on the vehicle provided by the buyer
The seller is not responsible for clearing the
goods for export, unless agreed.
The buyer bears all costs and risks involved in
taking the goods from the seller’s premises to
the desired destination.
“E” Terms:
• EX WORKS...NAMED PLACE (usually the seller’s premises)
• Abbreviation: EXW
• Transport mode: all
• Minimum requirements for the seller
• Seller’s cost and risk end when seller places the goods at the disposal of the
buyer at sellers premises or another named place
• Loading is buyer’s responsibility
• Pre-carriage is buyer’s responsibility
• Main-carriage is buyer’s responsibility
• Seller’s cost & risk end when goods are at the
disposal of the Buyer at the Seller’s premises
or named place.
• EXW = ExWorks (Named Place)
DAF (…named place)
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
Seller’s Risk
Seller’s Cost
MAIN CARRIAGE
ON-CARRIAGE
DES (…named port of destination)
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
Seller’s Risk
Seller’s Cost
MAIN CARRIAGE
ON-CARRIAGE
DEQ (…named port of destination)
SELLER
Export
Clearance
Import
Clearance
BUYER
Goods
PRE-CARRIAGE
Seller’s Risk
Seller’s Cost
MAIN CARRIAGE
ON-CARRIAGE
3.8 Delivered at Terminal (DAT)
(named place)
• Named place at terminal on buyer’s side (a terminal at
the destination port or a terminal not far beyond the
destination port where it’s yet to be cleared by Customs)
• Seller arranges export clearance and delivers goods
export packed to the named destination terminal, pays
all transport costs thereto and unloads
• Buyer arranges import clearance and on carriage
• Neither party is required to insure
• Transport Mode: All Modes
3.9 DDP- Delivered Duty Paid
INCOTERMS 2000
Delivered Duty Paid (DDP)
Named place of destination
Multimodal incoterm
Goods cleared
for Import
Costs
Risks
Seller
Named
Costs
Place of
destination
Risks
Buyer
The seller is responsible for delivering the goods to the named place of
destination having cleared them for import into the country of
destination. This term represents the maximum obligation for the seller.
3.10 CIP - Carriage & Insurance Paid
INCOTERMS 2000
Carriage and insurance paid to (CIP)
Named place of destination
Multimodal incoterm
Costs
Risks
Seller
Costs
Charge of
Carrier
Risks
Buyer
This term is the same as CPT but the seller also has to procure, and pay for,
marine insurance for the goods. Similar to CIF, CIP is suitable for multimodal
transportation.
3.11 CPT - Carriage Paid to..
INCOTERMS 2000
Carriage Paid To (CPT)
Named place of destination
Multimodal incoterm
Costs
Risks
Seller
Costs
Charge of
Carrier
Risks
Buyer
The seller is responsible for arranging the carriage and paying the freight to
the named destination, but the risk of loss of, and damage to, the goods,
passes from the seller to the buyer when the goods have been delivered into
the charge of the carrier in the country of export
What are Incoterms 2011?
• There is no such version as Incoterms 2011.
• The most recent revision is called as Incoterms
2010, which came into force on 1st January 2011.
The Revisions of the rules take place around every
ten years or so.
What is Incoterms 2010's connection with
transfer of title to the goods?
• The Incoterms rules are silent on the issue of when
title in the goods passes from seller to buyer. This
should be dealt with elsewhere in the commercial
agreement. The issue of title to the goods is related
to that of revenue recognition, which matters to
those organizations who want the best figures in
their financial reports.
What Incoterms rules work best with
letters of credit?
• Where possible use CIF, CIP, CFR or CPT.
• For all these rules, delivery takes place before the
main carriage. The carrier gives the seller a
transport document which (usually) serves as a
mechanism for control of the goods – it will be
presented to the bank under the letter of credit,
and then passed on to the buyer so that the goods
can be claimed.
Can we still use Incoterms 2000 in our agreements?
• Yes.
Many companies have complex agreements with
their counterparties and service providers, which
will be time‐consuming to redraft. Therefore parties
are free to continue to refer to Incoterms 2000 (or
any other revision!)–Provided that this is specified
unambiguously In their agreements
Can I still use the Incoterms® 2000?
• According to the International Chamber of
Commerce, all contracts made under Incoterms®
2000 remain valid even after 2011. In addition,
although the ICC recommends using Incoterms®
2010 from January 2011 onward, parties to a sales
contract can agree to use any version of Incoterms®
after 2011. It is important, however, to clearly
specify the chosen version of Incoterms® being
used (i.e. Incoterms® 2010, Incoterms® 2000, or any
earlier version).
Discover
The key to getting along with
others
How to build relationships with
other people
continued
Discover
The part self-esteem plays in
relationships
How to deal with conflicts
between people
Why It’s Important
Getting along with others will
help you at home, at school,
and on the job.
Key Terms
relationships
respect
empathize
self-esteem
conflict
prejudice
continued
Key Terms
mediator
compromise
conflict resolution
Building Relationships
Think about all your
relationships—your connections
or dealings with other people.
Building Relationships
The key to getting along with
people is respect, or
consideration for others.
Respect Is the Key
Employers take social skills
seriously.
They know that employees who
have social skills have the key to
good relationships in the
workplace.
Getting Along With Others
When you get along with
coworkers and others at work,
you will do a better job.
You will also enjoy your work
more.
Graphic Organizer
Ways to Build Relationships
Treat people as you
would like to be treated.
Try to understand the
other person’s side.
Speak carefully.
Be thoughtful and considerate.
Empathize—Try to see things from the other
person’s point of view and understand his or
her situation.
Think of the way others will feel when they
hear what you have to say.
continued
Graphic Organizer
Ways to Build Relationships
Listen when others talk.
Let other people know you’re interested in
them.
Help others.
Lend a hand if you see someone having
trouble doing something.
Be friendly.
Be pleasant and smile.
Have a sense of humor.
Find ways to see the light side of a situation.
Getting Along With
Yourself
How you feel about yourself—your
self-esteem—affects how you get
along with others.
Self-esteem is your recognition
and regard for yourself and your
abilities.
Dealing With Conflict
Even when people do their best to
get along, conflicts can arise.
A conflict is a strong disagreement.
Causes of Conflicts
Conflicts have a variety of causes.
Some are based on
misunderstandings.
Causes of Conflicts
Other conflicts come about
because people have different
beliefs or opinions, or because of
gossip and teasing, or jealousy.
Causes of Conflicts
Prejudice is another cause of
conflict.
Prejudice is a negative attitude
toward a person or group that is
not based on facts or reason.
Resolving Conflicts
No matter what its cause, a conflict
is like any other problem.
To deal with a conflict, you need
good problem-solving skills.
Resolving Conflicts
If you can’t agree, you may need to
ask someone to act as a mediator.
A mediator is someone who helps
opposing people or groups
compromise, or reach an
agreement.
Resolving Conflicts
At work, a step-by-step process
called conflict resolution may be
used to settle disagreements.
Graphic
Organizer
Steps in Conflict Resolution
1. Define the problem.
Take turns describing the problem from
different points of view.
2. Suggest possible solutions.
Offer solutions to the problem.
3. Evaluate possible solutions.
Discuss the suggested solutions.
4. Come to a compromise.
Brainstorm possible compromises. Then try to
agree to a compromise solution.
5. Get another point of view.
Invite a third person to listen and make
suggestions for a solution.
6. Ask someone else to decide.
Ask a mediator to make the final decision.
Preventing Conflicts
When you feel yourself getting
angry, try these ways of cooling off:
Take a deep breath and count to 10.
Go for a walk or do something else
that is physical.
continued
Preventing Conflicts
Laugh it off and walk away.
Take a few minutes to have a
“talk” with yourself.
Remind yourself of the reasons
you don’t want to get angry.
Critical Thinking Review
Critical Thinking
Q
Can you have good relationships with other
people if you have low self-esteem? Explain.
A
If you are not positive and respectful to yourself,
you will have a much more difficult time being
positive and respectful toward other people.
continued
Critical Thinking Review
Critical Thinking
Q
How does learning to do something new help
increase your self-esteem?
A
When you learn to do something new, you
realize what you are capable of doing, and the
experience gives you confidence in yourself.