Risk sharing (G1)

What are Incoterms®?

• Incoterms are a set of rules for credit terms policies

• Incoterms are a set of pre-defined terms used to help managers with the pricing strategy

• Incoterms are a set of 11 individual rules issued by the ICC, which define the responsibilities of sellers and buyers for the sale of goods in international transactions.

• None of the above

Which of the following does not belong to Incoterms 2020?

• EXW - Ex Works

• DAP - Delivered at place [place of destination]

• FCA - Free carrier

• DPD - Delivered at port of destination

Which term defines that the seller will make its goods available to the buyer at an agreed-upon location (might be at seller's warehouse), and the buyer is responsible for all risks of losses or damage to the goods once the goods have been made available?

• FCA - Free carrier

• EXW - Ex Works

• CPT - Carriage paid to [place of destination]

• CIP - Carriage and insurance paid to [place of destination]

Under what term, the seller includes transportation costs in its price and assumes the risk of possible losses until the carrier receives the goods?

• CPT - Carriage paid to (place of destination)

• FCA - Free carrier

• DAP - Delivered at place [place of destination]

• None of the above

DAP - Delivered at place [place of destination] means that the seller takes on all the risks and costs of delivering goods unloaded, to an agreed-upon location. True or False?

• True

• False

Which is the only Incoterm that requires the seller to unload goods at the place of destination?

• DAP – Delivered at place [place of destination]

• DDP – Delivered duty paid [place of destination]

• FOB – Free on board [port of loading]

• DPU – Delivered at place unloaded [place of destination]

Under the term FAS – Free alongside ship [port of loading], the seller passes the risk to the buyer when the goods are loaded at the originating port. True or False?

• True

• False

What does the importer have to pay under the term CIF – Cost, insurance, and freight [port of destination]?

• The importer pays all shipping costs until the destination port

• The importer must prepaid the insurance

• The importer must pay insurance at least 110% of value of goods

• All of the above

When does the risk transfer from seller to buyer under CIP - Carriage and insurance paid to [place of destination]?

• When the goods have been unloaded

• As soon as the goods are delivered to the carrier or appointed person

• When the goods have been delivered to the buyer’s warehouse

• All of the above

Under the CIP – Carriage and insurance paid to [place of destination], the transfer of the risk happens when the goods have been handed over to the carrier. True or False?

• True

• False