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Entering Target Markets: Difference between revisions
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=== Methods of [[w:payment|payment]] === | === Methods of [[w:payment|payment]] === | ||
* '''Open account''' | * '''Open account''' | ||
* '''[[w:Documentary credit|Documentary credit]]''' -> redirects to '''[[w:L/C|L/C]]''' as it ensures the payment. | |||
* '''[[w:Advance payment|Advance payment]]''' ( Teacher ) | |||
* '''[[w:Documentary collection|Documentary collection]]''' | * '''[[w:Documentary collection|Documentary collection]]''' | ||
:::A '''[[w:documentary collection|documentary collection]]''' is a process, in which the [[w:seller|seller]] instructs his [[w:bank|bank]] to forward [[w:document|document]]s related to the [[w:export|export]] of goods to the [[w:buyer|buyer]]'s bank with a request to present these documents to the buyer for [[w:payment|payment]], indicating when and on what conditions these documents can be released to the buyer. ( Wikipedia ) | |||
::::::Documentary Collections facilitate [[w:import|import]]/export operations. ''They do not provide the same level of security as '''[[w:Letters of credit|Letters of Credit]]''', but, as a result, the costs are lower.'' ( Wikipedia ) | |||
::::::Unlike the Letters of Credit, for a Documentary Collection the bank acts as a channel for the documents but does not issue any [[w:payment covenant|payment covenant]]s (does not guarantee payment). The bank that has received a documentary collection may [[w:debit|debit]] the buyer's account and make payment only if authorised by the buyer. ( Wikipedia ) | |||
:::::: Documentary collection is done with the '''[[w:Bill of lading|Bill of lading]]''' ( jubo-jubo ) | |||
:::Documentary Collections facilitate [[w:import|import]]/export operations. ''They do not provide the same level of security as '''[[w:Letters of credit|Letters of Credit]]''', but, as a result, the costs are lower.'' ( Wikipedia ) | |||
:::Unlike the Letters of Credit, for a Documentary Collection the bank acts as a channel for the documents but does not issue any [[w:payment covenant|payment covenant]]s (does not guarantee payment). The bank that has received a documentary collection may [[w:debit|debit]] the buyer's account and make payment only if authorised by the buyer. ( Wikipedia ) | |||
::: Documentary collection is done with the '''[[w:Bill of lading|Bill of lading]]''' | |||
== Lesson 5 - NO CLASS == | == Lesson 5 - NO CLASS == | ||