Why are incoterms important in international trade

Reference no: EM132126

QUESTION

You are trade analyst working in a commercial bank. You have been approached by one of your colleagues from other departments to provide some clarifications in relation to risks in international trade financing. You are requested to answer the following interrogations-

(a) Explain the following terms used in international trade-

Open account
Shipping guarantee
Avalised Bill of exchange
‘Dirty' bill of lading

(b) Why are incoterms important in international trade?

(d) Explain the risk management process and the importance of reporting and communication in this process

Reference no: EM132126

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