Language of Trade International Commerce Terms - 2060 Words

Running head: Language of Trade Language of Trade: International Commerce Terms International Logistics Management, TLMT 342 Professor February 21, 2010 Abstract International Trade has been a long standing practice between foreign nationals. Countries require commodities or goods from other countries for their needs. They in turn provide the reciprocal thus enhancing the countries development and economics. Because of the cultural and foreign business barriers, countries have to communicate effectively. Canada, China and Japan are the United States major trade partners. If a shipping problem or damage to goods occurs in route to the United States from one of these countries responsibility has to be†¦show more content†¦There are 13 Incoterms that are used to minimize the uncertainties that are associated with international trade from different countries. The terms are further divided into four groups, E, F, C and D. The Groups designate the first letter of the Incoterm and the specifics of their associated terms. There is only one term assigned to Group E, Departure Incoterms; Ex-Works (EXW). EXW is when the seller accepts responsibility to ensure goods are available at the buyer s location and the buyer accepts responsibility of the charges. The simplest of Incoterms, EXW renders all costs and risks involved in transporting goods from the seller s location to the buyer; the seller has minimum obligation and responsibilities. The seller is responsible for packing goods but not responsible for loading the goods on the pre-arranged vehicle that is provided by the buyer. The buyer bears all expenses involved to transport goods from the exporter’s location to the importer’s destination. However, the terms of EXW are negotiable by both parties. An amendment to the applicable Incoterm, a variant, can be applied to modify the importer or exporter’s responsibilities or for special contractual terms (Guru, 2004). In the event if a seller wants to sustain a competitive advantage against competitors, the seller can agree to accept responsibility for loading the goods and accept any associated risksShow MoreRelatedLectures and Reading for My Class, Incoterms923 Words   |  4 Pagesreadings for Professorâ€℠¢s International Trade Operations class during the preceding month, I have, as before, acquired a great deal of knowledge regarding the in’s and out’s of international business. I found the lectures and readings on Incoterms to be of particular interest. 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