Podcast
Questions and Answers
What is one advantage of using incoterms?
What is one advantage of using incoterms?
- Reduces paperwork for exporters and importers
- Ensures compliance with local tax regulations
- Sets out the responsibilities and aids in avoiding errors that could harm both parties in terms of monetary value (correct)
- Guarantees a fixed exchange rate for international transactions
What is the purpose of standardized terminology in incoterms?
What is the purpose of standardized terminology in incoterms?
- To restrict the number of companies involved in international business
- To simplify customs procedures for perishable goods
- To provide tax exemptions for international transactions
- To ensure consistent communication in international trade (correct)
What does incoterms help to legalize?
What does incoterms help to legalize?
- The liability of third-party logistics providers
- The accountability of both the exporter and the importer (correct)
- The exclusivity of trade agreements
- The government subsidies for international shipments
Flashcards
Advantage of Using Incoterms?
Advantage of Using Incoterms?
Incoterms clarify responsibilities, preventing costly errors for both parties involved in international trade.
Purpose of Standardized Terminology in Incoterms?
Purpose of Standardized Terminology in Incoterms?
Standardized terminology ensures everyone understands the terms in the same way, reducing misunderstandings.
What Legal Aspect do Incoterms Help With?
What Legal Aspect do Incoterms Help With?
Incoterms clearly define who is responsible for what, making each party accountable for their obligations.
