Entering Target Markets: Difference between revisions

(headings added and stuff moved around and redundancy removed)
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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]]'''
* '''[[w:Documentary credit|Documentary credit]]''' -> L/C ensures payment
:::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 )
* '''[[w:Advance payment|Advance payment]]'''
::::::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 )
* 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 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]]''' ( jubo-jubo )
 
* '''Documentary credit''' redirects to '''[[w:L/C|L/C]]''' as L/C as it is done with L/C ( jubo-jubo )


== Lesson 5 - NO CLASS ==
== Lesson 5 - NO CLASS ==