International commercial terms or inco terms, Financial Management

INCO terms

You learnt that specifications, delivery period and destination are all dependent  factors   on  a   particular   project.  Let   us  know  about   the international standards set for any project.

The INCO terms (International Commercial Terms) is a universally recognised set of definitions of international trade terms such as EXW (Ex Works....named place), FOB (Free on Board... named port of shipment), CFR (Cost and Freight.... named port of destination), and CIF (Cost, Insurance and Freight.... named port of destination). The INCO terms are developed  by  the  International  Chamber  of Commerce  (ICC)  in  Paris, France.

For example, for national procurement the trade term often used is FOR (Free on Rail), it defines the trade contract responsibilities and liabilities between the buyer and seller. It is a cost saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Specifying the appropriate INCO TERM in the bid document helps to arrange the responsibility of the seller, which enables him to submit the bid accordingly.

Posted Date: 9/28/2012 3:14:11 AM | Location : United States







Related Discussions:- International commercial terms or inco terms, Assignment Help, Ask Question on International commercial terms or inco terms, Get Answer, Expert's Help, International commercial terms or inco terms Discussions

Write discussion on International commercial terms or inco terms
Your posts are moderated
Related Questions
using the operating cycle and any other financial management knoweledge,dicuss the applicability of such a cycle to the poultry biussiness in uganda (consider broilers)

Deseasonalizing a Time Series The Ratio to Average Method allows us to identify the component of the seasonal variation in time series data and the indices themselves help us

The modified duration is a measure of the sensitivity of a bond's price to interest rate changes; the assumption made here is that the expected cash flow does not

Discounted Pay Back Period (DPBP) : The discounted payback period is the number of periods taken in recovering the investment outlay on the present value basis.  Discounted pa

You own three stocks: 1000 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5000 shares of Goldman Sachs Group. The current share prices and expected returns of Apple,

Define the meaning of procurement Term procurement was used in a broad sense so as to include the whole gamut of raising funds externally.

Explain about the primary and secondary markets. Primary and secondary markets: A primary market is a financial market wherein new matters of financial securities (both s

Advantage of mutual funds Mutual Funds are advantageous to individual investors in relation to their direct involvement in investment portfolio activity covering the following

Categorization of management risk: Once each event has been evaluated, and been classified as to its probability and impact, the next step is to categorise those events. To do

Question: On 1st October 2001 a man then aged 34 took out an endowment assurance policy with a sum assured of $100,000 payable on survival to age 50 or at the end of the year o