International payment methods — types?
Cash in Advance, L/C, Documentary Collections, Open Account
Cash in Advance — security?
Maximum security for sellers, payment before shipment.
International trade relationships — types?
Affiliated, Unaffiliated known, Unaffiliated unknown.
Cash in Advance — security?
Maximum security for sellers.
Letters of Credit — role?
Guarantees payment upon conditions met.
Documentary Collections — security?
Less secure than L/C, relies on documents.
Open Account — risk?
High risk for sellers.
L/C process — step?
Bank guarantees, conditions must be met.
L/C parties — involved?
Applicant, issuing bank, advising bank, beneficiar.
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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