Flashcards in #NegociatePriceandPayment Deck (14):
What are common methods of payment in international trade?
o/c w/ no security
o/c w/ security by export credit insurance
o/c w/ secured by payment guarantee
Payment by L/C
What are method of payment in small purchases?
COD( Cash on Delivery)
CAI( Cash against Invoice)
CWO (Cash with order)
What method makes late payment impossible?
When delay is excused?
- happens in grace period
- caused by Force Majeure
What does insurance premium depend on?
The credit worthiness of Buyer
Stability of Buyer's country and so on
What is the guarantee triangle?
Relationship of the principal, guaranters and beneficiary
What are business situations commonly use guanrantee?
- Losing prepayment
What are the guarantees used in the following biz situations?
Name types of L/C
irrevocable - revocable
back to back
What is export credit insurance?
payment guarantee from third party, covering risk of non - payment
What is a bank guarantee?
Disting Export Credit Insurance and Bank gurantee?
What are some limits of Export Credit Insurance?