Final answer:
Incoterms are rules that determine the responsibilities and liabilities of buyers and sellers in international trade from the perspective of the seller.
Step-by-step explanation:
Incoterms, or International Commercial Terms, are rules that determine the responsibilities and liabilities of buyers and sellers in international trade. They are developed by the International Chamber of Commerce (ICC) to provide clarity and consistency in global trade transactions.
Incoterms are viewed from the perspective of the seller. They define the delivery point, transfer of risks, and division of costs between the buyer and the seller. Incoterms specify the obligations of each party, such as transportation, insurance, customs clearance, and payment terms.
Incoterms are built by considering various factors, such as the mode of transport, the point of delivery, and the level of responsibility the buyer and seller are willing to assume. The ICC periodically updates and revises Incoterms to accommodate changes in international trade practices and legislation.