Factors influencing decision making in international commercial terms used by importers and exporters a case study of Dar es Salaam, Tanzania

This study evaluated factors that influence decision-making in INCOTERMS used by importers and exporters during sales agreements as well as transactions. Results from the study revealed different factors that influence exporters and importers to adopt INCOTERMS. The study indicated that importers are influenced by the company practice, value or cost of the freight, mode of shipment and volume of shipment to choose the INCOTERM to apply. But exporters were influenced by the mother company requirement, customs regulation, company practice, insurance, value or cost of the freight, mode of shipment and the volume of shipment. Furthermore, it was noted that organizations that support trade had not done efforts to create awareness to exporters and importers on application of the INCOTERMS.