Incoterms in Import and Export Management

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Questions and Answers

Which organization was responsible for establishing the most common international trade terms in 1936?

International Chamber of Commerce (ICC) (correct)

World Trade Organization (WTO)

European Union (EU)

United Nations (UN)

What does RISK indicate in international trade?

The cost of goods and services

The delivery terms

The responsible party in case of damage or loss (correct)

The payment method

What is the main purpose of INCOTERMS®?

To standardize payment procedures

To determine the ownership of goods

To regulate the trade of services only

To establish international trade terms (correct)

What is the significance of OWNERSHIP in international trade?

It determines to whom the goods belong Signup and view all the answers

What are the primary activities involved in EXPORT in international trade?

Delivering services or goods abroad and getting paid Signup and view all the answers

What do legal rules governing the contract apply if no further arrangements are made by the parties in international trade?

Legal rules from both parties' countries Signup and view all the answers

What is the primary intention of the Incoterms® 2010?

To establish a clear division of costs and risks between the buyer and the seller Signup and view all the answers

What does the ICC define as the 'critical point' in transit according to the text?

The point where the seller's responsibility ends and the buyer's responsibility begins Signup and view all the answers

What is a predominant question in sale contracts according to the text?

What should the seller do to get his money? Signup and view all the answers

What is the commercial relevance of Incoterms® according to the text?

To calculate contract price and costs of transport Signup and view all the answers

What does Incoterms® aim to primarily regulate according to the text?

Division of risk between seller and buyer Signup and view all the answers

What is one of the intentions behind Incoterms® according to the text?

To prevent disputes, claims, and losses Signup and view all the answers

How many terms does Incoterms® 2010 contain according to the text?

11 terms Signup and view all the answers

What does Incoterms® 2010 regulate primarily according to the text?

'Critical point' on transit where responsibilities change Signup and view all the answers

What does Incoterms® intend to give an answer to primarily according to the text?

The division of costs between seller and buyer Signup and view all the answers

What is one of the commercial relevance of Incoterms® according to the text?

Calculating contract price and costs of transport Signup and view all the answers

Study Notes

International Trade Terms

The International Chamber of Commerce (ICC) was responsible for establishing the most common international trade terms in 1936.

RISK and INCOTERMS

RISK in international trade indicates the transfer of risk from the seller to the buyer.
The main purpose of INCOTERMS is to provide a set of rules for the interpretation of the most commonly used trade terms in international trade.

Ownership and Export

The significance of OWNERSHIP in international trade lies in determining who bears the risk of loss or damage to the goods during transportation.
The primary activities involved in EXPORT in international trade include production, pricing, financing, and logistics.

Legal Rules and Incoterms

If no further arrangements are made by the parties in international trade, legal rules governing the contract apply to resolve disputes.
The primary intention of the Incoterms 2010 is to clarify the obligations of buyers and sellers in international trade.
The ICC defines the 'critical point' in transit as the point at which the risk of loss or damage to the goods is transferred from the seller to the buyer.

Incoterms and Sale Contracts

A predominant question in sale contracts is "Who bears the risk of loss or damage to the goods during transportation?"
The commercial relevance of Incoterms lies in providing a set of rules that helps to reduce misunderstandings and disputes between buyers and sellers in international trade.
Incoterms primarily aims to regulate the obligations of buyers and sellers in international trade, particularly with regards to the transfer of risk.
One of the intentions behind Incoterms is to provide a common language for international trade, making it easier for buyers and sellers to understand their obligations.
Incoterms 2010 contains 11 terms that regulate the obligations of buyers and sellers in international trade.
Incoterms 2010 primarily regulates the transfer of risk and responsibility between buyers and sellers in international trade.
Incoterms primarily intends to give an answer to the question of "Who bears the risk of loss or damage to the goods during transportation?"

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Description

Test your knowledge of INCOTERMS® and the necessity of international rules in the context of import and export management. Explore concepts related to importing goods and services from other countries for market use and profit generation, as well as the process of exporting to foreign markets.