An Exploratory Study on the Search Volume of Incoterms and Trade Volume

Abstract

This study explored the relationship between the search volume of Incoterms rules and international trade volume. For this purpose, Author collected search volume data from Google Trend to explore search volume by Incoterms rules and examined its relationship between exports and imports. The result is as follows. First, the search volume for each Incoterms rule was different. In other words, DAP and FCA were the most frequent in 'rules for any mode of transport (RAM)' and FOB and CIF were the largest in 'rules for sea and inland waterway transport (RSW)'. Second, FCA and FOB rules have a significant positive effect on exports and imports. Third, there was an interaction effect between the Incoterms rules. In other words, if the group with the lower DAP increased the FCA, or the group with the lower DDP increased the FCA, the trade volume increased. This study has an academic implication that it has expanded to a macro perspective, unlike the existing micro study focused on Incoterms rules. And there are practica implications that have provided companies with strategies for efficient use of Incoterms.