Incoterms® (International Commercial Terms) are standardized terms used in international and domestic trade contracts to define the responsibilities of buyers and sellers. Here's why option B is correct:
Standardization: Incoterms® provide a set of standardized terms that clarify the responsibilities of buyers and sellers in trade transactions.
Contract Clarity: They specify who is responsible for costs, risks, and tasks involved in the delivery of goods from the seller to the buyer.
Global Use: Incoterms® are globally recognized and used in international trade, ensuring that all parties have a clear understanding of their contractual obligations.
Risk Management: By defining when the risk transfers from the seller to the buyer, Incoterms® help manage and mitigate risks in the supply chain.
References:
International Chamber of Commerce (ICC). (2020). Incoterms® 2020: ICC Rules for the Use of Domestic and International Trade Terms. ICC Publishing.
Ramberg, J. (2011). ICC Guide to Incoterms® 2010. ICC Publishing.
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