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Question 248 - CSCP discussion

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The purpose of Incoterms is to establish common:

A.
software system terminology between supply chain partners.
Answers
A.
software system terminology between supply chain partners.
B.
contracts for trade within the supply chain.
Answers
B.
contracts for trade within the supply chain.
C.
company communication channels within the supply chain.
Answers
C.
company communication channels within the supply chain.
D.
quality measures for use in the supply chain.
Answers
D.
quality measures for use in the supply chain.
Suggested answer: B

Explanation:

Incoterms (International Commercial Terms) are standardized terms used in international and domestic trade contracts to define the responsibilities of buyers and sellers. Here's why option B is correct:

Standardization: Incoterms provide a set of standardized terms that clarify the responsibilities of buyers and sellers in trade transactions.

Contract Clarity: They specify who is responsible for costs, risks, and tasks involved in the delivery of goods from the seller to the buyer.

Global Use: Incoterms are globally recognized and used in international trade, ensuring that all parties have a clear understanding of their contractual obligations.

Risk Management: By defining when the risk transfers from the seller to the buyer, Incoterms help manage and mitigate risks in the supply chain.

International Chamber of Commerce (ICC). (2020). Incoterms 2020: ICC Rules for the Use of Domestic and International Trade Terms. ICC Publishing.

Ramberg, J. (2011). ICC Guide to Incoterms 2010. ICC Publishing.

asked 16/09/2024
MD NAZRI BEZAMAN
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