Members of Group 2:

1. Võ Quang Hùng
2. Trần Tấn Kiệt
3. Nguyễn Ngọc Thảo Vy
4. Đồng Thị Kim Oanh
5. Lê Anh Thảo

Group assignment chapter 3

Q1. Discuss the ricks in the following export payment tems & how to
manage the ricks.

1. Consignment sales
Risks
Delays in payment
Risk of nonpayment
Cost of returning merchandise
Limited sales effort by importers
How to manage the risks
The seller should suggest to the
buyer an extra commission if they
pay early or on time. On the
contrary, they will be deducted a
certain amount
The seller must find out the buyer
carefully before signing the
contract, including: financial
situation, transaction history, ... In
addition, the seller can bind the
buyer's assets through accepting the
property of the buyer.
The seller must specify in the
contract will not receive the goods.
If the case is to receive the goods
back, the buyer must bear the costs
involved in the delivery of the
goods
Sellers will make suggestions to
increase commissions on sales to
motivate buyers to sell to the third
party

2. Remittance - pre payment

Risks How to manage the risks
Non Delivery The two parties agree to use the
form of deposit. After the goods are

Delivery time is not correct
The quantity and quality of
products are not as stated in the
contract.
3. Remittance - payment at sight
Risks
The buyer may not receive the item
and pay for them, while the item
has been shipped
4. Deferred payment.
Risks
Buyer does not pay
The seller is forced to price
The seller has had a capital jam
delivered, the buyer will pay
completely.
Claim for damages caused by
seller's delay
Request proof of product quality
and quantity by a third party
(acceptable by both parties).
Specify in the contract if the quality
and quantity of the goods are not as
agreed, the seller must compensate
according to the order value.
How to manage the risks
The seller must find out the buyer
carefully before signing the
contract, including: financial
situation, transaction history, ...
How to manage the risks
The seller must find out the buyer
carefully before signing the
contract, including: financial
situation, transaction history, ...
Develop an appropriate payment
schedule, request a payment
commitment on time.
Sellers should suggest that buyers
receive a percentage of the
commission discounts if they pay
early.