What do Incoterms govern?

• A. The responsibilities, costs, and risks of buyers and sellers for international shipments.
• B. The tax implications of international trade.
• C. The branding and marketing terms for international products.
• D. Domestic shipping regulations.

Answer: (A)

Incoterms define who is responsible for what, who pays for which parts of the journey, and who bears the risk at different points in international shipments. They specify the tasks each party must handle (like transport arrangement, insurance, customs clearance) and the transfer of risk from seller to buyer during the voyage. They do not set tax rules, branding/marketing terms, or domestic shipping regulations. That makes the option describing responsibilities, costs, and risks for international shipments the correct description.