UNIT 6: PAYMENT IN INTERNATIONAL TRADE

The mode of payment in which a bank acts as an intermediary without accepting financial risk is called

A document ordering an importer to pay an exporter a specified sum or money at a specified time is called (an)_______

The mode of payment in which the importer's bank issues a document stating that the bank will pay exporter when the exporter fulfills the terms of the document is called a (an)

A contract between the exporter and carrier that specifies destination and shipping costs of the merchant is called a(n)________.

The mode of payment in which an exporter ships merchandise and later bills the import is called__________

The mode of payment in which an importer pays an exporter for merchandise

before it is shipped

______ is a letter of credit under which the documents are forwarded to the importer's bank, while sight draft is presented at a later future date.

______ is a letter of credit permitting the beneficiary to receive a sum prior to shipment

______ is a letter of credit that can be utilized by someone designated by the original beneficiary

______ is a letter of credit calling for renewed credit to be made available when the issuing bank informs the beneficiary that the buyer has reimburshed the issuing bank for the drafts already drawn