Final answer:
Incoterms 2020 play a foundational role in global logistics by standardizing international trade practices, supporting worldwide trade growth by providing clarity and reducing risks associated with transportation of goods.
Step-by-step explanation:
Incoterms 2020 are critical to global logistics because they standardize international transactions, clarifying the responsibilities of exporters and importers, which helps mitigate risks when transporting goods globally. With the advancements in transportation, such as shipping containerization, and reductions in trade barriers, there has been a remarkable increase in world trade. These standardized terms facilitate this growth by providing clear instructions on handling freight, insurance, and relevant transportation costs. Incoterms help businesses worldwide to understand their costs, risks, and obligations, ensuring that the rapid increase in the flow of goods is supported by a strong legal and procedural framework.