12. International Commercial Terms - Incoterms

Try these first

1. 1.

   What does FOB stand for?

   Hint

   Consider the transport stage where the responsibility lies.

2. 2.

   Which Incoterm means the seller bears all costs until delivery?

   Hint

   Think about who carries the burden in delivery negotiations.

3. 3.

   What does Incoterms help determine?

   • Shipping methods
   • Responsibilities in trade
   • Payment terms

   Hint

   Think about the purpose of these terms.

4. 4.

   True or False: Under DDP, the buyer is responsible for import duties.

   • True
   • False

   Hint

   Consider who pays at the delivery point.

5. 5.

   If a seller uses DDP in the agreement but the buyer is inexperienced in customs, how might this affect the transaction?

   Hint

   Consider customs processes in international trade.

6. 6.

   Analyze how switching from CIF to FOB might impact the cost structure for a buyer.

   Hint

   Focus on risk and cost during shipping.