Chapter 01 Overview of International Trade 13
1. Introduction / 14 2. Purposes of international trade / 16
3. Risks in international trade / 19
4. Review questions and answers / 28
Chapter 02 Trade Documents 35
1. Introduction / 36 2. Financial documents / 37
3. Commercial documents / 49
4. Review questions and answers / 63
Chapter 03 Overview of Methods of Payment 67
1. Introduction / 68
2. Basic types of methods of payment / 70
3. Brief overview of each method of payment / 74
4. Case study for respective method of payment / 76
5. Review questions and answers / 80
Chapter 04 Payment in Advance (Cash in Advance) 85
1. Introduction / 86
2. Operation of a payment in advance / 88
3. Advantages/disadvantages / 91
4. Review questions and answers / 94
Chapter 05 Open Account 97
1. Introduction / 98 2. Operation of an open account / 100
3. Features and advantages/disadvantages / 103
4. Review questions and answers / 105
Chapter 06 Documentary Collection 109
1. Introduction / 110
2. Operation of a documentary collection / 113
3. Features and advantages/disadvantages / 124
4. The Uniform Rules for Collections (URC 522) / 128
5. Case study / 136
6. Review questions and answers / 144
Chapter 07 Documentary Credits (L/C) 153
1. Introduction / 154 2. Operation of a documentary credit / 158
3. Advantages/Disadvantages / 169 4. Various forms of credit / 171
5. Independence principle and fraud exception / 175
6. Review questions and answers / 183
Chapter 08 UCP 600 and L/C Case Study 191
1. Introduction / 192 2. Major clauses of UCP 600 / 194
3. Case study of a documentary credit / 200
4. SWIFT and the Fields / 211
5. Review questions and answers / 238
Chapter 09 Other Methods of Payment 241
1. Bank payment obligation (BPO) / 242 2. Consignment / 250
3. Check payment / 253 4. Netting / 255
5. Review questions and answers / 256
Chapter 10 Demand Guarantee (independent guarantee) and Standby L/C 261
1. Introduction / 262
2. Structures and forms of guarantees / 267
3. Independence Principle and Fraud Exception / 277
4. Case study of demand guarantee/standby L/C / 285
5. Review questions and answers / 296
Chapter 11 Negotiating Payment Terms 299
1. Terms of payment and cash management / 300
2. Contents of the terms of payment / 302
3. Final design of the terms of payment / 305
4. Review questions and answers / 307
Chapter 12 Trade Finance 309
1. Introduction / 310
2. Export working capital financing and insurance / 314
3. Negotiation of bills of exchange (discounting invoices) / 317
4. Export factoring and international forfaiting / 320
5. Review questions and answers / 329
Chapter 13 Export Credit Insurance/Guarantee 333
1. Introduction / 334
2. Overview of export credit insurance/guarantee / 339
3. Operation of export credit insurance/guarantee / 341
4. Review questions and answers / 350
Appendix 1. Uniform Customs and Practice for Documentary Credits (UCP 600) 354
Appendix 2. Uniform Rules for Collections (URC 522) 382
■ INDEX 399