UNIT 7 International Payment of Goods PART1 Case Lead-in PART 2 Reading PART 3 Sample Conversations ⑤大连理工大学出版社
UNIT 7 International Payment of Goods PART 1 Case Lead-in PART 2 Reading PART 3 Sample Conversations
Part1 Case Lead-in A Chinese company A wanted to push sales of his products to a Japanese company B and made an offer on L/C terms.B replied that he would accept the offer if A changed the term of payment into D/P after 60 days sight, and appointed Bank B as the collecting bank.Why did B make such a counteroffer? Just as in domestic trade,any transaction in intemational trade,large or smal,has to be settled through payment by the buyer.However,payment in international trade is often beset with more difficulties owing to the fact that either party to a business transaction has relatively limited knowledge of the financial strength and commercial reputation of his counterpart.Payment clause including such aspects as time,place,modes and instruments of payment is very important in an international sales contract. ⑤大连理工大学出版社
Part 1 Case Lead-in A Chinese company A wanted to push sales of his products to a Japanese company B and made an offer on L/C terms. B replied that he would accept the offer if A changed the term of payment into D/P after 60 days sight, and appointed Bank B as the collecting bank. Why did B make such a counteroffer? Just as in domestic trade, any transaction in international trade, large or small, has to be settled through payment by the buyer. However, payment in international trade is often beset with more difficulties owing to the fact that either party to a business transaction has relatively limited knowledge of the financial strength and commercial reputation of his counterpart. Payment clause including such aspects as time, place, modes and instruments of payment is very important in an international sales contract
Part2 Reading International Payment Chinese Payment for international trade is difficult and complicated for a number of reasons.First,longer distance and more procedures are involved.Second,longer time is needed.Third,different regulations and laws may be involved.Fourth,currencies and financial systems are different in different countries.Payment must be handled with special care. ⑤大连理工大学出版社 西王至四
Part 2 Reading International Payment Payment for international trade is difficult and complicated for a number of reasons. First, longer distance and more procedures are involved. Second, longer time is needed. Third, different regulations and laws may be involved. Fourth, currencies and financial systems are different in different countries. Payment must be handled with special care. Chinese
Part2 Reading Instruments of Payment Chinese Draft Draft,also referred to as a bill of exchange,is an unconditional written order issued by one person(the drawer)to another(the drawee),requiring the latter to pay on demand,or at a fixed time or determinable future time a sum of money to or to the order of a specified person,or to the bearer(the payee).The payee and the drawer are generally but not necessarily the same person,as the drawer can instruct the drawee either to pay"to the order of ourselves"or"to the order of someone else",for instance,the bank. According to the time of payment,a draft can be a sight draft or a time draft(usance draft).The former calls for immediate payment on presentation to the payee while the latter is payable at a later date,e.g.30,45,60 or 90 days after sight or a certain date.According to the identity of the drawer,a draft can be either a commercial draft or a banker's draft.A commercial draft is drawn by a firm or a person,while a banker's draft is drawn by a bank.According to whether the draft is accompanied by shipping documents or not,a draft is either a clean draft or a documentary draft.A documentary draft is accompanied by the relevant documents such as the B/L,the invoice,the insurance policy,etc. ⑤大连理工大学出版社
Part 2 Reading Instruments of Payment Draft Draft, also referred to as a bill of exchange, is an unconditional written order issued by one person (the drawer) to another (the drawee), requiring the latter to pay on demand, or at a fixed time or determinable future time a sum of money to or to the order of a specified person, or to the bearer (the payee). The payee and the drawer are generally but not necessarily the same person, as the drawer can instruct the drawee either to pay “to the order of ourselves” or “to the order of someone else”, for instance, the bank. According to the time of payment, a draft can be a sight draft or a time draft (usance draft). The former calls for immediate payment on presentation to the payee while the latter is payable at a later date, e.g. 30, 45, 60 or 90 days after sight or a certain date. According to the identity of the drawer, a draft can be either a commercial draft or a banker’s draft. A commercial draft is drawn by a firm or a person, while a banker’s draft is drawn by a bank. According to whether the draft is accompanied by shipping documents or not, a draft is either a clean draft or a documentary draft. A documentary draft is accompanied by the relevant documents such as the B/L, the invoice, the insurance policy, etc. Chinese
Part2 Reading Instruments of Payment Chinese Check Check is an unconditional order drawn by a depositor on a bank,requiring the bank to pay the sum of money to the payee.A check is always at sight and should be paid upon presentation.If a check is issued by a bank,it is called a banker's demand draft. Promissory Note Promissory note is an unconditional written promise made by one person to another person,engaging to pay on demand,or at a fixed time or determinable future time a sum of money to or to the order of a specified person, or to the bearer.A promissory note can be issued by a person,a firm or a bank,but those issued by persons and firms are not widely used in trade today. ⑤大连理工大学出版社
Part 2 Reading Instruments of Payment Check Check is an unconditional order drawn by a depositor on a bank, requiring the bank to pay the sum of money to the payee. A check is always at sight and should be paid upon presentation. If a check is issued by a bank, it is called a banker’s demand draft. Promissory Note Promissory note is an unconditional written promise made by one person to another person, engaging to pay on demand, or at a fixed time or determinable future time a sum of money to or to the order of a specified person, or to the bearer. A promissory note can be issued by a person, a firm or a bank, but those issued by persons and firms are not widely used in trade today. Chinese