U4 Financing international trade - TACN3 (Kinh tế và kinh doanh quốc tế) FTU

UNIT 4 FINANCING INTERNATIONAL TRADE Brief discussion questions 1. 2. 3. What are some of the risks involved in trading internationally? What payment methods do you know that are used when exporting or importing goods? What is the role of the banks in international trade? 2 What are some of the risks involved in trading internationally? 3 Suggested answer ❖ ❖ ❖ ❖ Risk of not being paid (for the exporter) Risk of not receiving goods (for the importer) Risk of receiving goods which are different from those ordered or of lower quality or in a damaged condition Risk of force majeure (Eg: storms, disasters etc.) 4 What payment methods do you know that are used when exporting or importing goods? 5 What is the role of the banks in international trade? 6 Suggested answer ❖ Active role: When the Banks get involved directly in the payment process, supporting both the exporter and the importer to complete their obligations so that the contract is carried out as agreed. For example, in the documentary credit method of payment. 7 Suggested answers ❖ Passive role: When the banks only do things as requested. For example, just transferring money to the account of the seller/exporter. 8