Reflection

The reflection of Mr. Luong Vien Tai

The course Global Trade Operations has taught me valuable lesson about different theories
of international trade and the importance of these theories in today’s business world
especially when trading internationally. In fact, international trade involves both importing
and exporting goods and it also takes into account the use of international rules for the
delivery which is called as International Commercial Terms (Incoterms). In addition, there
are a total of 11 Incoterms that uses commonly in the contract of international sale and
these rules have become standard contractual delivery conditions for seller and buyer
during negotiation (Glitz 2011). Since 2011, the Incoterms 2010 has changed from 13
delivery terms to 11 delivery terms only and these Incoterms include EXW, FCA, CPT, CIP,
DAT, DAP, DDP, FAS, FOB, CFR and CIF (Lucia Paliu – Popa 2012).
Thanks to the Global Trade Operations course, I have gained more knowledge about
Incoterms and know how these rules are essential when participate in foreign trade. In the
future, I need to take more research about the Incoterms and understand them precisely in
order to choose a right delivery term during negotiation with partner as each individual
Incoterms are different in terms of the responsible of buyer and seller for delivery costs.
Hence, I need to carefully determine the benefits and drawbacks when acting as a buyer or
seller because the delivery terms can have direct impact to the invoice value of goods.
References
Lucia Paliu – Popa 2012, ‘Development of the International Trade in Terms of Incoterms
2010 Rules’, Annals of Dunarea De Jos University of Galati, Fascicle I: Economics and
Applied Informatics, vol. 1, no. 1, pp. 99-106.
Glitz, F.E.Z. 2011, ‘INCOTERMS AND BRAZILIAN LEGISLATION ON
CONTRACTS’, Education and Science Without Borders, vol. 2, no. 3, pp. 40-44.