Final answer:
The statement regarding Incoterms is true; they define how costs and risks are shared between buyer and seller in international trade, specifying the point where responsibility shifts from the seller to the buyer. Incoterms play a crucial role in international logistics and have been shaped by reductions in trade barriers and technological advances that have facilitated the growth of global trade.
Step-by-step explanation:
The statement that Incoterms are universally accepted terms of sale that specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods is true. Incoterms, short for International Commercial Terms, are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in international commercial transactions. They are designed to communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
Incoterms define key aspects of freight shipping, determining at what point responsibility and risk pass from the seller to the buyer. For instance, with terms like FOB (Free On Board), the seller bears all costs and risks up to the point the goods are loaded on board the vessel, while with DAP (Delivered At Place), the seller bears all risks and costs associated with delivering goods to a named destination.
The last several decades have witnessed a significant decrease in barriers to trade, such as tariffs, import quotas, and nontariff barriers, complemented by technological advancements in transportation, communication, and information management, which have collectively contributed to a marked increase in international trade.