Incoterms, short for international commercial terms, are a set of globally recognized acronyms established by the International Chamber of Commerce (ICC) to define the responsibilities and obligations of buyers and sellers in commercial transactions involving the transportation of goods. These terms serve as a standardized communication tool, ensuring clarity and minimizing confusion in the complex world of international trade. In…
PIP: In the announcement of rates, every 0.0001 change is called a pip (PIP) and in the change of the yen rate, every 0.01 change is called a pip. There are two rates in a trade. Rate of purchase from you (Bid) and sale to you (Ask). It is natural that the rate of sale to you is higher than…
Many forces shape trade flows, including trade policies, changes in the nature and location of consumer demand, and differentials in the costs of labor and other inputs across geographies. Another important, but underappreciated, driver of trade flows is technology. The history of trade reflects the ongoing march of new technological innovations. After the Second Industrial Revolution, for example, the introduction…
