Understanding Incoterms and Trade Law

What does Incoterms stand for?

• International Commercial Terms

• International Cargo Terms

• International Trade Terms

• Intercontinental Commercial Terms

Which Incoterm indicates that the seller is responsible for all costs until the goods are delivered to the buyer's location?

• CIF

• EXW

• DDP

• FOB

What is the main purpose of Incoterms in international trade?

• To determine the pricing of goods in international trade.

• The main purpose of Incoterms is to clarify the responsibilities and obligations of buyers and sellers in international trade.

• To regulate the quality standards of products in international trade.

• To establish trade agreements between countries.

Which payment method is commonly used for international transactions and offers a guarantee of payment?

• Cash on Delivery

• Wire Transfer

• Letter of Credit

• PayPal

What is the role of a letter of credit in international trade?

• A letter of credit guarantees payment to the seller in international trade.

• A letter of credit is a type of insurance policy.

• A letter of credit is used to negotiate trade tariffs.

• A letter of credit serves as a shipping document.

In Vietnam, what law governs foreign trade management?

• Trade and Commerce Law

• Law on Foreign Trade Management

• International Trade Regulation

• Foreign Trade Act

What does the term 'FOB' mean in the context of Incoterms?

• Freight On Board

• Freight Over Board

• Free Of Burden

• Free On Board

Which Incoterm places the risk on the buyer once the goods are loaded onto the vessel?

• CIF (Cost, Insurance, and Freight)

• EXW (Ex Works)

• DAP (Delivered At Place)

• FOB (Free On Board)

What is the significance of the Incoterms 2020 update compared to previous versions?

• The Incoterms 2020 update removes all previous terms entirely.

• The Incoterms 2020 update enhances clarity and adapts to modern shipping practices with new terms and clarified responsibilities.

• The update focuses solely on reducing shipping costs.

• Incoterms 2020 has no impact on international trade regulations.

What are the potential risks associated with using cash in advance as a payment method in international trade?

• Full refund policy for all transactions

• Guaranteed delivery of goods

• Stable currency exchange rates

• The potential risks include non-delivery of goods, limited recourse for recovery, currency fluctuations, trust issues, and increased fraud risk.