THE BENEFITS OF INCOTERMS IN INTERNATIONAL TRADE OF GOODS

Abstract

Incoterms play a vital role in international trade, providing standardized guidelines that define the responsibilities of buyers and sellers in the transportation of goods. This paper explores the benefits of Incoterms in facilitating global trade by providing clarity, reducing risks, and promoting efficiency in the movement of goods across borders. By establishing clear delivery terms, risk allocation, and cost responsibilities, Incoterms help minimize misunderstandings, prevent disputes, and streamline logistics. The paper also examines how Incoterms is evolving to accommodate changing international trade dynamics, such as technological advances and new trade regulations. In addition, it highlights how businesses can use Incoterms to improve supply chain transparency and foster stronger commercial relationships. Through a comprehensive analysis, the paper highlights the importance of Incoterms as an essential tool for ensuring the smooth and secure exchange of goods in the global marketplace.