Final answer:
C.I.F, or Cost, Insurance, and Freight, defines a trade scenario where the seller is accountable for the goods' cost, insurance, and transportation to the destination port.
Step-by-step explanation:
C.I.F, which stands for Cost, Insurance, and Freight, is a term used in international trade to describe a situation where the seller of goods has agreed to cover the cost of the goods, the insurance, and the freight charges needed to transport the goods to the designated port of destination.
Essentially, under C.I.F terms, the seller bears the expenses and risks until the goods are delivered to the ship at the port of origin.
For example, if a company in the United States purchases machinery from a supplier in Germany under C.I.F terms, the German supplier is responsible for the machinery's cost, obtaining insurance for its transit, and paying for the freight to transport the machinery to the designated U.S. port.