This chapter discusses international payments. It provides an overview of international payment concepts and participants. It then examines the basis of international payments, including relevant legislation, rules, and contracts. The chapter explores various international payment instruments such as commercial paper, checks, and bank cards. It analyzes different methods of international payment like advance payment, open account, collection, and letters of credit. Finally, it discusses risks in international payments and poses discussion questions.
This chapter discusses international payments. It provides an overview of international payment concepts and participants. It then examines the basis of international payments, including relevant legislation, rules, and contracts. The chapter explores various international payment instruments such as commercial paper, checks, and bank cards. It analyzes different methods of international payment like advance payment, open account, collection, and letters of credit. Finally, it discusses risks in international payments and poses discussion questions.
This chapter discusses international payments. It provides an overview of international payment concepts and participants. It then examines the basis of international payments, including relevant legislation, rules, and contracts. The chapter explores various international payment instruments such as commercial paper, checks, and bank cards. It analyzes different methods of international payment like advance payment, open account, collection, and letters of credit. Finally, it discusses risks in international payments and poses discussion questions.
International Payment Chapter 7: International Payment
CONTENT An overview of international payment
The basis of international payment
International payment instruments
Methods of international payment
Risks in international payment operation
Questions for discussion
Chapter 7: International Payment An overview of international payment o Concept of international payment, characteristics and role o The international payment participants o Standards and Practices used for international payment Chapter 7: International Payment Concept of international payment, characteristics and role o Concept: o The international payment is defined as a payment operation between entities residents and non residents has international scope o Characteristics : - Related to economic entities in different countries - Concern with foreign currency and conversion methods, exchange rate, etc - Potential Risks and Consequences are significant - Follow the international standards and practices o Role: International payment is critical basis for the formation and development of international financial system : Circulating goods, services and cash flows Chapter 7: International Payment The basis of international payment o Legislation and international covenants 1. United Nations Convention on contracts for the international trade Wien Convention 1980 2. Geneva Convention1930 “Uniform Code on Bills of exchange” 3. Geneva Convention1931 “International Cheque” 4. Other international laws and conventions o International rules and customary 1. The conditions of international trade (Incoterms) 2. The consistency of Practice principles for Documentary Credits (UCP) 3. Uniform Rules for Collection (URC) 4. Uniform Rules on inter-bank reimbursement (URR) Chapter 7: International Payment
The international payment participants
1. Import export Enterprises and Resellers 2. Commercial banks 3. Transportation companies 4. Insurance companies 5. Agency represented other nations government Chapter 7: International Payment
Basis of international payment
o Foreign trade contracts o Commercial documents in international settlements o International payment conditions Chapter 7: International Payment
Foreign trade contracts
o Concept and characteristics o The content structure of foreign trade contract o Examples o Experiences on examining the contract of sale in international settlements Chapter 7: International Payment
Commercial documents in international settlements
o Transport document o Goods insurance document o Goods document Chapter 7: International Payment The conditions in international settlements o The payment currency o Payment locations o Payment time o Payment methods o Guarantees on payment contract value Chapter 7: International Payment International payment instruments o Commercial paper: Debentures and Bill of exchange o Cheque in international payment o Bank cards Chapter 7: International Payment Commercial paper: Debentures and Bill of exchange o Debentures o Bill of exchange o Commercial paper characteristics o Regulations on payment of draft Chapter 7: International Payment Cheque in international payment o Cheque concept o Type of cheques in international payment o The process international payments via cheque o Regulations for international payment via cheque Chapter 7: International Payment Bank cards o The concept of Bank cards o Type of Bank cards o Bank cards used in international payments o Regulations on the use of bank cards in international payment Chapter 7: International Payment Methods of international payment 1. Advance payment method 2. Open account method 3. Remittance method 4. Collection of payment method 5. Letter of credit method Chapter 7: International Payment Advance payment method o Characteristics and apply conditions o Advantages and disadvantages o The payment process Chapter 7: International Payment Open account method o Characteristics and apply conditions o Advantages and disadvantages o The payment process Chapter 7: International Payment Collection of payment method o Characteristics and apply conditions o Advantages and disadvantages o The payment process Chapter 7: International Payment Letter of credit method o Characteristics and apply conditions o Advantages and disadvantages o The payment process Chapter 7: International Payment Risks in international payment operation o Types of risks in international payment o The consequences in international payment o Solutions to prevent and reduce the risk in international payment Chapter 7: International Payment Questions for discussion o Features and international payment conditions. The meaning of the research problem o Comparing international payment methods o Risks of international payments o The process of implementing Letter of credit method o Current situation of international payment operations in Vietnam including evidences, reviews and improving methods