FOB Price Meaning: The Complete Guide to Understanding Free on Board Terms in International Trade
The FOB (Free on Board) prices refer to the place where international trade transfers ownership and responsibility of a product/service between a seller and a buyer. Under this price structure, buyers are needed to absorb costs and risks when goods are loaded on vessels in the port of origin and thus it is important to calculate costs in detail and manage risks that can lead to success of the transactions. Being aware of the FOB terms, legal consequences, documentation forms, and the relevant industry medicines, the businesspersons can maximize their international trading in a manner that reduces the risks and limits the costs of the business.