Terms of Trade, also known as Incoterms (International Commercial Terms), are standardized international trade rules that define the rights and responsibilities of buyers and sellers in the shipment of goods. This chapter provides a concise overview of the importance and implications of Terms of Trade or Incoterms in international business. It explores the significance of using standardized trade terms to clarify obligations, allocate risks, and determine the delivery and payment responsibilities between parties involved in international trade. The chapter also examines key aspects of Incoterms, such as transportation, insurance, customs clearance, and transfer of risk. By understanding and applying appropriate Incoterms, businesses can streamline their international trade operations, minimize disputes, and ensure smooth and efficient trade transactions.
