I have an assignment regards to Research International Business Opportunities that need help, this task comprises of 3 parts, I will attach the workbook as well as my friend answer of this task, you can use my friends answer as guidance, please do not copy exact words from it, however you can paraphrase the answer if necessary. The workbook will outline all information regards to the task. Please read the workbook detail carefully and answer these questions in much detail as possible ( you can use all sources without referencing).
International Commercial Terms (INCOTERMS)
a. Who created the law (which authority)?
The Incoterms was conceived by the International Chamber of Commerce (ICC) in
b. What is the full name of the law, and where can the most current version be
INCOTERMS are also call The Incoterms rules or International Commercial Terms.
First published in 1936and have been periodically updated, with the eighth version
Incoterms 2010 published on January 1, 2011.
You can access to the most current version into the following webpages:
c. What is the general intent or purpose of the legislation?
The Purpose of INCOTERMS are to provide a set of international rules for
interpreting the chief terms used in foreign trade contracts, and for the optional use
of businessmen who prefer the certainty of uniform international rules.
Keeping pace with trade practices. Parties to a contract often are unaware of the
differences between trading practices in their respective countries. The existing
diversity of interpretation is a constant source of friction in international trade,
leading to misunderstandings, disputes and references to the courts with all the
waste of time and money that these entail. To help traders overcome this friction, the
International Chamber of Commerce first published a set of international rules in
Overcoming barriers such us uncertainty as to which country’s laws apply to their
contracts. Difficulties arising from inadequate information. Difficulties arising from
diversity in interpretation.
d. What sections are specifically relevant to engaging in international business
Incoterms has two sections or two different sets of rules, one with seven rules that
apply for any mode of transport and the other set are four rues for sea and inland
EXW – Ex Works, the seller makes the goods available at their premises.
FCA – Free Carrier, the seller delivers the goods, cleared for export, at a named
CPT – Carriage Paid To, the seller pays for the carriage of the goods up to the
named place of destination.
DAT – Delivered At Terminal, the seller covers all the costs of transport and
assumes all risk until destination port or terminal.
DAP – Delivered At Place, the seller delivers when the goods are placed at the
disposal of the buyer on the arriving means of transport ready for unloading at
the named place of destination.