Final answer:
The Incoterms created by the International Chamber of Commerce are meant to define how buyers and sellers share freight and insurance costs. They support global trade by providing clear rules on transportation and the transfer of risks. The rise in world trade can be attributed to lower transportation costs and the reduction of trade barriers.
Step-by-step explanation:
Incoterms were developed by the International Chamber of Commerce in order to define how the buyer and seller share freight and insurance costs. These are international commercial terms that facilitate global trade by clarifying the roles and responsibilities of buyers and sellers with respect to the transportation and delivery of goods. Incoterms cover aspects such as the point of delivery, the division of costs, and when the risk transitions from the seller to the buyer.
World trade has risen significantly due to a combination of factors. Advances in transportation and communication have dramatically reduced the costs of moving goods globally. Furthermore, international agreements have led to the reduction of trade barriers, stimulating trade by making it easier and more economical for countries to exchange goods and services.