An exploratory study of Incoterms ® knowledge and effective use in trade

John Vogt and Jonathan Davis

International Journal of Trade and Global Markets, 2024, vol. 19, issue 2, 193-212

Abstract: The research focuses on the usage of the Incoterms^® rules in practice, whether they are correctly understood and appropriately employed, how fast companies are adopting the newest version of Incoterms^® and by which parts of the organisation. The results indicate broad awareness but only measured adoption of Incoterms^® 2020, and significant and pervasive misuses and misunderstandings of the Incoterms^® rules. The Incoterms^® rules are international trade terms that define the obligations, roles and responsibilities, the risks and the costs assumed by the seller and buyer organisations in the trade transaction. These provide clarity to the buyer-seller organisation to make the trade efficient and effective. Poorly utilised or defined rules can leave one or both parties with unplanned obligations, risks, costs, and inefficiencies. The lack of formal training in Incoterms^® rules, plus the large number of functions involved, increases the use of incorrect or inappropriate Incoterms^® rules.

Keywords: trade; Incoterms ®; logistics; buyer-seller relationship; supply chains; global markets. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=137743 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijtrgm:v:19:y:2024:i:2:p:193-212

Access Statistics for this article

More articles in International Journal of Trade and Global Markets from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().