WorksheetsFIN323 Chapter 4 Settlements of International Trade
Total questions: 14
Worksheet time: 1hrs 20mins
Write both your name together with your Student ID.. Name (Student ID)
How are you today? Next week semester break, excited tak? hehe
Which is NOT a type of settlement in international trade?
Counter Trade
Consignment Method
Payment in Advance
Open Account
Cash on Delivery
Open account is sale on credit, seller sends the goods first and collect the payment on predetermined date after each shipment. What are the characteristics of open account transactions? (Tick all FOUR)
It is the first time the seller deals with the buyer.
The buyer credit status and general reputation is good.
The buyer’s country must be economically and politically stable.
They have long-term trading partnership.
The seller has absolute trust on buyer.
If you are a seller, would you like open account, advance payment method or consignment? Why?
In your own words, describe what you understand with countertrade?
In countertrade, can you exchange for 50% cash & 50% goods..
Yes
No
In your own understanding, what is the difference between direct and indirect offset in buyback trade?
Bilateral Payment Agreement (BPA) is an agreement between all the central banks of the developing countries. Which statement is FALSE?
BPA is to promote trade between Malaysia and the country concerned.
The payment in BPA is protected and safe, guaranteed by respective Central Banks.
The risk of BPA is that the seller might not obtain the payment from the buyer.
BPA is to encourage banking institutions to finance such trade.
From your understanding & in your own words, what is the difference between sight and usance payment?
Give ONE difference between Transferable LC & Back-to-back LC.
If Maybank has an account in a Singaporean Bank, it is :-
Nostro Account
Vostro Account
So far, FIN323 okay? Faham? I understand that it is boring sikit, sbb semua teori, but it is all knowledge on international trade, will be useful if you work with logistics company after you graduate.. :)
Anything u want to tell me, can write here.. Okay, that's all, thank you for doing the quiz.. Enjoy your semester break.. Take care and stay safe always :)
