Which term was created to simplify international transactions?

• A. International Commercial Terms
• B. Incoterms
• C. Trade terms
• D. Export terms

Answer: (B)

Incoterms were created to simplify international transactions by standardizing the terms used in cross-border sales. They clarify who is responsible for costs and risks at different points in the shipment—such as transport, insurance, and export/import clearance—and specify when the risk passes from seller to buyer. They provide a common, globally recognized set of rules published by the International Chamber of Commerce and include widely used terms like FOB, CIF, and Delivered at Place. The phrase International Commercial Terms is related, but in practice the standardized label used is Incoterms. The other options are generic terms and do not represent the formal, internationally standardized framework for this purpose.