Actually, any sale is a gift until you get paid. But exporters are especially concerned. Since their buyers might be 10.000 miles away!So, understanding the four basic ways to get paid for an international order is important,The method you select will affect the risk you bear, the size of orders you might be able to get,and the financing you might require to fill the order. The following are the methods of paymentfor the exporter, from the most to the least secure. Cash-in-advance. New exporters frequently request this method, Their attitude typically is, “I don’t know you very well but, if you send me he money, I'll send you the goodsAdvantage: The exporter gets paid before the shipment leaves the U.S. If cash is received prior to production. the exporter will not need additional capitalDrawback : It limits the exporters sales potential since it ties up the importers cash, can be a very non-competitive payment method if other suppliers are offering similar products or services Letter of credit: Letters of credit ( L/C) substitute the credit worthiness of the importer and exporter with that of the respective banksAdvantage: The exporter will be paid if the terms and conditions of the L/C are metDrawback: There are lees associated with opening and amending L/Cs: the importers cash is tied-up since cash or other assets need to collateralize the L/C, which in turn might reduce the order size. The exporters might need additional working capital to produce the product or service, since L/Cs will not pay prior to shipment/performanceDocumentary collections: This method uses the banking system for the exporter to send the necessary documents associate with the order to the importerAdvantage: The documents and goods are not released until importer pays or agrees to pay at some future date. If the buyer refuses to accept the documents and goods, the exporter retains title to the goods and can sell them to a third party or bring them back to US。which method of payment put the exporter in greatest risk?( )

未知题库 2024-12-16 1237

摘要： A.Letter of credit B.Documentary collections C.Cash-in-advance D.Open account参考答案：……...

A.Letter of credit
B.Documentary collections
C.Cash-in-advance
D.Open account
参考答案：……