DISCUSSION

I. Method Of Payment
1. Defenition

a. According to Business Dictionary

Method Of Payment is terms stating the acceptable forms of remmitance for a given sales
transactions, the party selling the product or service declares the acceptable method of payment.
b. According to Cllins English Dictionary
The way in which in amount of money is paid, for example by cash, Credit card or another one.
c. According to Financial Dictionary
The way one pay for a transaction.
2. We can conclude that the defeniton Method of Payment is the way to pay a transaction
for a product or the . There two types of Method Of Payment.

3. Home Trade
a) Defenition
1. According to QFinance Dictionary

Trade inside firm’s home country. This trade by a company within the country in which it is
based.

2. According to Your Article Lirary

In a typical international transaction, an exporter deals with an overseas buyer who is situated in
a significantly different regulatory and business environment.

3. According to Wikipedia

Domestic trade, also known as internal trade or home trade, is the exchange of domestic goods
within the boundaries of a country

4. We can conclude that the Home trade is the transaction in one country.

There are some type of paument to do this trade,

1. Cash

Cash is a payment of the price of goods or services in which the buyer handed over
money as proof of payment of the price of goods purchased together with the order. Cash
payment is the method of payment used in the form of currency, namely money in the for of
physical banknotes and coins.

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Sample case:

Dede bought a mobile phone in a store, then dede bought the phone in cash so he paid with cash
or with some amount of paper money already in the deal.

2. Check

Check is a customer's written order to the bank to withdraw the funds of a certain amount
in its name or on behalf. Payments made first checks in 352 BC in Rome, but only in 1500 found
evidence of the existence of transactions using checks in the Netherlands, then flourished into the
UK around the 1700s. One bank assigns a serial number in the upper right corner of the check in
order to track the existence of the check, and that is where the word "check"

Sample case:

An employee in the purchasing department, get the job of purchasing an apparatus to shop X,
after the deal with the salesman pays it by check for a lot of value. And the salesman can
exchange it to the bank listed on the check.

3. Credit Card

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 Credit Card is a means of payment in a transaction, as well as cash money. but this is a
payment by swiping the card. Furthermore, customers can use the card to conduct transactions in
various merchants for example: Supermarket, Hospital, Hotel, Travel Agent, Airline etc.

Sample Case:

when a mother is shopping in a supermarket and paying her with a credit card. so the cashier
swiped the card into a credit card scan machine.

4. Foreign Trade
1) Defenition

a. According to Wikipedia

Foreign trade is the exchange of capital, goods, and services across international borders
or territories. In most countries, such trade represents a significant share of gross domestic
product (GDP).

b. According to Enciclopedia

Countries trade with one another to obtain goods and services that are of better quality
than, less expensive than, or simply different from, those produced at home.

c. According to The Free Dictionary

Foreign trade is the cross-frontier trade between countries in goods and services, with
differences between countries.

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 2) We can conclude that The Foreign Trade is the transaction among country.

There some type of Payment to do Foreign Trade:

a. Letter Of Credit

Is one way of payment of a draft in the amount specified this credit document is issued by
the Bank of foreign exchange at the request of importers aimed at export abroad through
correspondent Bank.

Sample Case:

When a company engages in transactions with overseas companies and after dealings with
appropriate products and makes payments with Letter of Credit. And payment by money transfer.
And payment by money transfer.

b. Payment of Export And Import Transactions With Consignment

Payment of export and import transactions conducted by consignment, is delivery system of

export goods to importers abroad sent by exporters as a deposit to be sold by importers with

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prices set by the importer. The goods that are not sold by the importer will then be returned to the
exporter.

Sample Case:

When company X exports one type of barag with a considerable amount, then when the
consignment company x entrust the goods to overseas company Y for sale and when the goods
are not exhausted it will dikemalikan to company X.

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 II. Currency
A. Defenition

a. According to Wikipedia

A currency (from Middle English: curraunt, "in circulation", from Latin: currens, -entis), in the
most specific use of the word, refers to money in any form when in actual use or circulation as a
medium of exchange, especially circulating banknotes and coins.

b. According to Free Dictionary

Money in any form when in actual use as a medium of exchange, especially circulating paper
money.

c. According to Merriam Webster

Currency is the circulation as a medium of exchange.

d. We can conclude that the currency is the circulation of money and about the exchange.

B. Factors That Affect The Currency

Foreign Exchange rate (ForEx rate) is one of the most important means through which a
country’s relative level of economic health is determined.

There 8 the factors that Affect the currency:

1. Inflation Rates
Changes in market inflation cause changes in currency exchange rates. A country with a
lower inflation rate than another's will see an appreciation in the value of its currency. The prices
of goods and services increase at a slower rate where the inflation is low. A country with a
consistently lower inflation rate exhibits a rising currency value while a country with higher
inflation typically sees depreciation in its currency and is usually accompanied by higher interest
rates.

2. Interest Rates
Changes in interest rate affect currency value and dollar exchange rate. Forex rates,
interest rates, and inflation are all correlated. Increases in interest rates cause a country's currency
to appreciate because higher interest rates provide higher rates to lenders, thereby attracting more
foreign capital, which causes a rise in exchange rates.

3. Country’s Current Account / Balance of Payments

A country’s current account reflects balance of trade and earnings on foreign investment.
It consists of total number of transactions including its exports, imports, debt, etc. A deficit in

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current account due to spending more of its currency on importing products than it is earning
through sale of exports causes depreciation. Balance of payments fluctuates exchange rate of its
domestic currency.

4. Government Debt
Government debt is public debt or national debt owned by the central government. A country
with government debt is less likely to acquire foreign capital, leading to inflation. Foreign
investors will sell their bonds in the open market if the market predicts government debt within a
certain country. As a result, a decrease in the value of its exchange rate will follow.

5. Terms of Trade
Related to current accounts and balance of payments, the terms of trade is the ratio of
export prices to import prices. A country's terms of trade improves if its exports prices rise at a
greater rate than its imports prices. This results in higher revenue, which causes a higher demand
for the country's currency and an increase in its currency's value. This results in an appreciation
of exchange rate.

6. Political Stability & Performance

A country's political state and economic performance can affect its currency strength. A
country with less risk for political turmoil is more attractive to foreign investors, as a result,
drawing investment away from other countries with more political and economic stability.
Increase in foreign capital, in turn, leads to an appreciation in the value of its domestic currency.
A country with sound financial and trade policy does not give any room for uncertainty in value
of its currency. But, a country prone to political confusions may see a depreciation in exchange
rates.

7. Recession
When a country experiences a recession, its interest rates are likely to fall, decreasing its
chances to acquire foreign capital. As a result, its currency weakens in comparison to that of
other countries, therefore lowering the exchange rate.

8. Speculation
If a country's currency value is expected to rise, investors will demand more of that
currency in order to make a profit in the near future. As a result, the value of the currency will
rise due to the increase in demand. With this increase in currency value comes a rise in the
exchange rate as well.

List of currency in the World :

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No. Negara Mata Uang 38 Chad Franc
1 Afganistan Afgani 39 Kamerun Franc
2 Panama Balboa 40 Kongo Franc
3 Muangthai Bath 41 Luxemburg Franc
4 Bolivia Biliviarnus 42 Monako Franc
5 Ethiopia Birr 43 Perancis Franc
6 Venezuela Bolivar 44 Senegal Franc
7 Ghana Cedi 45 Swiss Franc
8 Haiti Courde 46 Paraguay Guarini
9 Brasilia Cruzeiro 47 Surinama Guilder
Deutsche
10 Jerman 48 Belanda Gulden
Mark
11 Aljazair Dinar 49 Yaman Imani
12 Irak Dinar 50 Papua New Gini Kina
13 Kuwait Dinar 51 El Salvador Kolon
14 Libia Dinar 52 Nicaragua Kordoba
15 Yordania Dinar 53 Cekoslawakia Koruna
16 Yugoslavia Dinar 54 Islandia Krona
17 Emirat Arab Dirham 55 Denmark Krone
18 Maroko Dirham 56 Norwegia Kroon
19 Abbesinia Dollar 57 Swedia Kroon
20 Amerika Serikat Dollar 58 Angola Kwanza
21 Australia Dollar 59 Burma/Myanmar Kyat
22 Brunei Dollar 60 Albania Lek
23 Hongkong Dollar 61 Honduras Lempira
24 Jamaika Dollar 62 Rumania Leu
25 Liberia Dollar 63 Bulgaria Lev
26 New Zeiland Dollar 64 Turki Lira
27 Singapura Dollar 65 Vatikan Lira
28 Taiwan Dollar 66 Italia Lire
29 Zimbabwe Dollar 67 Finlandia Markka
30 Vietnam Dong 68 Nigeria Naira
31 Yunani Dracham 69 Laos New Kip
32 Mozambik Escudo 70 Spanyol Peseta
33 Portugal Escudo 71 Argentina Peso
34 EROPA EURO 72 Chili Peso
35 Hongaria Forint 73 Dominika Peso
36 Afrika Tengah Franc 74 Filipina Peso
37 Belgia Franc 75 Kolombia Peso
76 Kuba Peso

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 77 Mexico Peso
78 Uruguay Peso
79 Irlandia Pound
80 Israel Pound
81 Libanon Pound
82 Malvinas Pound
83 Mesir Pound
84 Siprous Pound
85 Sudan Pound
86 Suriah Pound
87 Syria Pound
88 Inggris Pound Sterling
89 Guatemala Querizal
90 Afrika Selatan Rand
91 Namibia Rand
92 Iran Real
93 Oman Real
94 Qatar Real
95 Saudi Arabia Real
96 Kamboja Riel
97 Malaysia Ringgit
98 Soviet Rubbel
99 Ceylon Rupee
100 India Rupee
101 Nepal Rupee
102 Pakistan Rupee
103 Srilangka Rupee
104 Indonesia Rupiah
105 Austria Shilling
106 Kenya Shilling
107 Tanzania Shilling
108 Peru Sole
109 Equador Surrve
110 Bangladesh Taha

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Examples of Money Currency :

No Name Of Currency In Currency In Rp

Country
1 Amerika 1500 20,863,748.06
Dollar
Serikat
2 Pound 1500 27,937,987.39
Inggris
Sterling
3 Eropa Euro 1500 24,654,421.20
4 Korea Selatan Won 1500 19,486.50
5 India Rupee 1500 309,574.449

Example of Money Changer

“After dede took a vacation in Los Angeles, he would exchange the US Dollar into
Rupiah to a bank”

A : Teller , B : Dede

A : Good morning, can I help you?

B : Good morning. I want to change money USD into Rupiah.
A : How much?
B : USD 1.500 (one thousand Dollars).
A : Please fill in this form first.
B : Thank you.
………………………………………………………
A : Here is the form, and here is Rp. 20,863,748.
B : Thank you. I will count first. Please wait a moment.
A : Sure.
B : Thank you. Can I have a plastic bag?
A : Sorry we don’t have plastic bag. You can use this envelope.
B : Thank you.
……………………………………………………………………………………………………

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 I. Banking Facilities
1. Defenition

1. According to Investor World

As authorized by the Federal Reserve in 1981, a sub-bank operation established by a U.S.

domestic bank that enables it to participate in Eurocurrency transactions through a separate set of
accounts not subject to Federal Reserve requirements, FDIC assessments and interest rate
limitations.

2. According The Free Dictionary

A loan extended by a bank to a business in need of operating capital. This may take several
forms, from a short-term loan to a line of credit. Different banks have different facility plans for
their clients who own or run businesses.

3. According To 12 CFR 28.11 [Title 12 -- Banks and Banking; Chapter I -- Comptroller of

the Currency, Department of the Treasury; Part 28 -- International Banking Activities; Subpart
B -- Federal Branches and Agencies of Foreign Banks]

International Banking facility means “a set of asset and liability accounts segregated on the
books and records of a depository institution, a United States branch or agency of a foreign bank,
or an Edge corporation or Agreement corporation, that includes only international banking
facility time deposits and extensions of credit.”

2. We can conclude that Banking facilities is the Banking Facilities are the facilities that
provided by bank to the customers, for the effective and efficient performance.

3. Bank Services

a. Teller

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 b. Security

4. Bank Electronic Services

͏ ATM
- ATM according to Ellen Florian (2004) is "a computer-based telecommunication tool that
provides a place for customers in conducting financial transactions without the need of a
bank teller.
- ATM according to Kasmir (2007: 327) "ATM is a machine that provides convenience to
customers in performing banking transactions automatically for 24 hours in 7 days
including holidays

͏ Q- Machine

The queuing system of banks or queuing machines for banks, since the beginning of the
market is aimed at achieving customer service conditions to be effective and efficient, by serving
in sequence according to the arrival of the teller and customer service, but the queuing system for
a bank is required to have wider benefits

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 ͏ Account Book Printing Machine (Passbook)

A passbook or bankbook is a paper book used to record bank transactions on a deposit account.

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 CONCLUTION
From the first topic “Method Of Payment” above we can get the conclution that in this
era there are some method of payment when doing some transaction, either domestic or foreign
transaction all is easier.

In the second topic “ Currency “, we can conclude that there are some factor that affect
the currency. And if we want to exchange currency, can be done at the bank.

The third topic “Banking Facilities” discusses about the facilities that provided by bank
to the customer. And also shows the services that provided by bank for the customers. Other than
that banks also provide Electronic Services to get the efficient and effective performance.

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 WORK CITED
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2. http://www.investorguide.com/definition/home-trade.html

3. http://qa.answers.com/Q/What_is_the_definition_of_home_trade

4. http://www.economicsconcepts.com/home_trade_and_international_trade.htm

5. https://en.oxforddictionaries.com/definition/trade

6. https://dictionary.reverso.net/english-cobuild/home%20trade

7. http://latifah0307.blogspot.com/2014/03/pembayaran-tunai-dan-non-tunai.html

8. https://id.wikipedia.org/wiki/Cek
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T_103
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13.https://fbs.trade/?
utm_source=bing_id&utm_medium=cpc&utm_campaign=id_search_test_rmkt&utm_content=in
formation&utm_term=trade&msclkid=542fcb3c27611854ccd5902bd85036b4

14.http://expertsaver.net/Find/?keyword=currencies

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maps/foreign-trade

17. http://gudankmakalah.blogspot.com/2012/02/makalah-perdagangan-internasional.html

18. https://www.merriam-webster.com/dictionary/currency

19. https://en.wikipedia.org/wiki/Currency

20. http://www.blogduit.net/2012/05/daftar-mata-uang-negara-di-dunia.html#ixzz5HjFgE2DU

21. http://www.blogduit.net/2012/05/daftar-mata-uang-negara-di-dunia.html

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22. https://www.compareremit.com/money-transfer-guide/key-factors-affecting-currency-
exchange-rates/

23. https://www.x-rates.com/calculator/?from=INR&to=IDR&amount=1500

24 . https://w3cargo.com/pembayaran-transaksi-export-dan-import/

25. https://antrian.web.id/sistem-bank/

26.
https://id.images.search.yahoo.com/yhs/search;_ylt=AwrwJUXmTRlbo2wAMK0eHYpQ;_ylu=X
3oDMTBsZ29xY3ZzBHNlYwNzZWFyY2gEc2xrA2J1dHRvbg--;_ylc=X1MDMTM1MTIyOD
cwMgRfcgMyBGFjdG4DY2xrBGJjawM1dnRhbWRsYnRuMGdiJTI2YiUzRDQlMjZkJTNEcV
pSZk92WnBZRjZUdU0zc2pIMHFpVmJSbWlFLSUyNnMlM0QwZyUyNmklM0QuSEEyY3V
kUXNiQ3dFcFoyWHBXUQRjc3JjcHZpZANjZkZjaURFd0xqSmY5Vlp0Vjl1Q0N3TzBNVEV
5TGdBQUFBRGM2cFZPBGZyA3locy1pcnktZnVsbHlob3N0ZWRfMDAzBGZyMgNzYS1nc
ARncHJpZANzTHNfbWEzZ1FGV1ZtRUlESnR0LjZBBG10ZXN0aWQDbnVsbARuX3N1Z2c
DNQRvcmlnaW4DaWQuaW1hZ2VzLnNlYXJjaC55YWhvby5jb20EcG9zAzAEcHFzdHIDBH
Bxc3RybAMEcXN0cmwDMTcEcXVlcnkDbWVzaSBhbnRyaWFuIGJhbmsEdF9zdG1wAzE1
MjgzODUwNjYEdnRlc3RpZANudWxs?
gprid=sLs_ma3gQFWVmEIDJtt.6A&pvid=cfFciDEwLjJf9VZtV9uCCwO0MTEyLgAAAADc6
pVO&p=mesi+antrian+bank&fr=yhs-iry-fullyhosted_003&fr2=sb-top-
id.images.search.yahoo.com&ei=UTF-
8&n=60&x=wrt&type=wny_dnldastr_18_06_dopc&hsimp=yhs-
fullyhosted_003&hspart=iry#id=3&iurl=https%3A%2F%2F4.bp.blogspot.com%2F-
2GOvQnaHsXY%2FWHMWN8QGINI
%2FAAAAAAAABx4%2Fx71aR9PFLIo67B6PMSxmS-Y4SoBNSWpFACLcB
%2Fs1600%2FIMG_20161222_101001.jpg&action=close

27. http://www.investorwords.com/15520/International_Banking_Facility_IBF.html

28. http://financial-dictionary.thefreedictionary.com/Bank+Credit+Facilities

29. https://definitions.uslegal.com/i/international-banking-facility/

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