3.6. a) Define the terms below:
Bill of Exchange beneficiary issuing bank irrevocable Letter of Credit
drawers of the draft drawees advising/confirming bank confirmed Letter of Credit
b) Match them with their Russian equivalents:
безотзывный аккредитив авизующий/подтверждающий банк
трассант, векселе-/чекодатель
банк-эмитент трассат бенефициар
подтверждающий аккредитив вексель
3.7. Answer the following questions:
1. What are the risks for the exporters in international trade?
2. Are there any risks for the importers?
3. What should exporters do in order to succeed in today’s global marketplace and win sales against foreign competitors?
4. What are the basic methods of payment for international transactions? Which of them is the most secure one?
5. What is the least attractive payment option for the buyer? Why?
3.8. Provide a short summary of the text.
3.9. Study the example of “Terms of Payment” clause and complete the tasks that follow.
Terms of Payment
1.1. Within thirty (30) days from the date of signing this Contract, the Buyer is to open in favour of the Seller an irrevocable confirmed Letter of Credit with City Bank, London, for hundred per cent (100%) of the total contract value.
The Letter of Credit is to be valid for three (3) months.
1.2. Payment from this Letter of Credit at the rate of hundred per cent (100 %) of the total contract value is to be effected in GB pounds against the following shipping documents:
1.2.1. Original Bill of Lading issued in the name of the Buyer destination Odessa port of Ukraine.
1.2.2. Shipping Specification.
1.2.3.Certificate of Quality.
1.2.4. Certificate of Origin.
1.2.5. Packing List.
1.2.6. Insurance Policy.
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