Problem
You are a U.S. surfboard manufacturer located in Orange County, CA. You've never sold outside the United States. You have been contacted by a distributor in Bali, Indonesia that would like to purchase 100 of your surfboards to sell in Indonesia. This is your first transaction with this distributor and it's worth $50,000. Answer the following question according to this scenario.
What incoterm will you use when you give him a price and shipping quote for air freight (EXW, FOB, CIF, etc.)? Why? Be sure to include either the place of departure or destination depending on the incoterm used.