LUNA: A Role Play Game for Learning Incoterms 2000

Abstract

Incoterms 2000 is the standard used for setting the conditions of commercial sales between nations. It is a subject often misunderstood or ignored in most international business or logistic courses. LUNA is a competitive three party role-play game (RPG) that calls on undergraduate students to develop and evaluate pricing and terms of sales for an export transaction based on Incoterms 2000. The exercise is divided into individual and group phases. The game’s objective is to enhance the students’ understanding of the obligations that are embedded in Incoterms 2000 as well as derive proper pricing for a given sales terms. By using a two phase process the exercise attempts to address the RHINO or free rider problem that is often observed with an in class RPG. The game has been used successfully both in the classroom and online through Blackboard