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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
