文档介绍：Compared with payment arrangements for domestic transactions, payments for international transactions are plicated and difficult for a number of reasons. First,the arrangements are international; as a result, longer distance and more procedures are involved. Second, longer time is needed in setting an international payment. Third, different regulations and systems of law that are applied plicate the arrangements. Fourth, the ary and financial matters are differnt in different countries and different methods are used. Because of the above reasons, international payment arrangements involve more risks and must be handled with special care.
Exporter and importers in international transactions have different concerns. While the importers is concerned if he can get the goods as ordered, the exporter wants the security of payment. Terms of payment reflect the extent to which the seller requires a guarantee of payment before he loses control of the goods. The more trustworthy the importer is , the less the exporter needs to have payment guaranteed before he loses control of the goods. There are four methods of payment used frequently in international trade. They are:
Cah in advance
Under this arrangement, the exporter is paid when the importer places his order or when the goods are ready for shipment to the buyer.
Documentary credit
While distrust exist between exporters and im