Research Paper on:
Global Trade and ICOTERMS

Unformatted Sample Text from the Research Paper:
language and culture may be seen as barriers to trade. These barriers may be the immediately apparent, but may also be indirect. For example, even where a common language  is used the definition of terms may be interpreted different by the different parties. This can give rise to disputes and costly legal battles. The potential for disputes due to  different interpretation of terms used has been recognised in a range of laws, and contracts often inclusive of relevant definitions of terms. Therefore, it could be argued, or hypothesised, that  a standard set of definition of terms that are widely accepted will have the ability to reduce the number of cases that are brought before the courts.  In 1936, the Paris based International Chamber of Commerce (ICC), proposed the ICOTERMS that were standard definition of the meaning of terms used commonly  in international trade (Freudmann, 1996). These definitions have also been accepted by the United Nations Commission on International Trade (ICOTERMS 2000). The latest version of ICOTERMS was released in  2000. This contained the definitions of thirteen commonly used terms, such as FOB and CIF contracts. These are short for free on board (fob) or cast, insurance and freight  (Biederman, 2000). Other terms included are EXW (Ex works), CPT (Carriage Paid To) and DDU (Delivered Duty Unpaid) (ICOTERMS 2000). The  definitions give the rights and responsibilities are expected of the buyers and sellers sand also the potential consequences of a breach of the responsibilities (Biederman, 2000). Therefore, these may be  seen as simple terms that facilitate interregional understanding and as such reduce the barriers and costs to international trade (Raszkowski, 2001). The definitions are not binding unless they are