FOB vs CIF: Complete Guide to International Trade Terms for Global Importers and Exporters
FOB and CIF are such an option as they term in the shipping arrangement is quite dissimilar, and they have both have privileges and complexities. FOB terms load more burden upon buyers and give more control and possible cost benefits as compared to CIF terms which are also easy to operate and with greater cost implications. The best selection is business capability, risk tolerance and business strategy with many companies having the advantage of developing capabilities to use each term depending on the exact situations and relationship with the suppliers.