Shipment contracts are more common in international trade than destination contracts.

Question

Quizplus · Accepted Answer

Shipment contracts, such as FOB (Free on Board) or CIF (Cost, Insurance, and Freight), are more common in international trade than destination contracts because they specify the point at which the risk and responsibility for the goods transfer from the seller to the buyer. In destination contracts, such as Delivered Duty Paid (DDP), the seller bears the risk and responsibility until the goods are delivered to the buyer's specified destination.

Shipment Contracts Are More Common in International Trade Than Destination