International Payment Methods and Security Flashcards (9 cards)

All cards

1Question

International payment methods — types?

Answer

Cash in Advance, L/C, Documentary Collections, Open Account

2Question

Cash in Advance — security?

Answer

Maximum security for sellers, payment before shipment.

3Question

International trade relationships — types?

Answer

Affiliated, Unaffiliated known, Unaffiliated unknown.

4Question

Cash in Advance — security?

Answer

Maximum security for sellers.

5Question

Letters of Credit — role?

Answer

Guarantees payment upon conditions met.

6Question

Documentary Collections — security?

Answer

Less secure than L/C, relies on documents.

7Question

Open Account — risk?

Answer

High risk for sellers.

8Question

L/C process — step?

Answer

Bank guarantees, conditions must be met.

9Question

L/C parties — involved?

Answer

Applicant, issuing bank, advising bank, beneficiar.

Test yourself with the quiz

Answer 9 questions on International Payment Methods and Security.

1. What is an international payment method?

2. Why is 'Cash in Advance' often used in international trade transactions between new trading partners?

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