In conclusion, Incoterms are important for facilitating international trade by clarifying the obligations of buyers and sellers in foreign trade contracts. Choosing the right Incoterm is crucial to ensure a smooth and successful international shipment. To avoid mistakes, it is important to consider the mode of transport, the responsibilities of each party, and the trade regulations of the destination country when choosing an Incoterm. By doing so, both parties can avoid potential disputes, misunderstandings, and additional costs, and have a clear understanding of their responsibilities.

b. Illustrate the selection of Incoterm EXWORKS and DDP affected the item unit price with suitable examples. (10 marks)