Chap19Exports and Imports(国际财务管理,英文版).pptVIP

Chapter Outline A Typical Foreign Exchange Transaction Forfaiting Government Assistance in Exporting The Export-Import Bank and Affiliated Organizations Countertrade Forms of Countertrade Generalizations about Countertrade A Typical Foreign Exchange Transaction Over the years, (centuries, really) an elaborate process has evolved for handling exports and imports. Figure 19.1 illustrates this process Process of a Typical Foreign Trade Transaction Forfaiting Forfaiting is a type of medium-term financing used to finance the sale of capital goods. It involves the sale of promissory notes signed by the importer in favor of the exporter. The forfait, usually a bank, buys the notes at a discount from face value from the exporter. The exporter gets paid and does not have to carry the financing. Government Assistance in Exporting For political reasons (having to do with mercantilism), most developed countries offer competitive assistance to domestic exporters. This assistance often takes the form of subsidized credit that can be extended to exporters. Also credit insurance programs that guarantee financing extended by private financial institutions are common. The Export-Import Bank and Affiliated Organizations In 1934 the Eximbank of the United States was founded as an independent government agency to facilitate and finance U.S. export trade. Eximbank’s purpose is to provide financing in situations where private financial institutions are unable or unwilling to because: The loan maturity is too long. The amount of the loan is too large. The loan risk is too great. The importing firm has difficulty in obtaining hard currency. Countertrade Countertrade is an umbrella term used to describe many different types of transactions each in “which the seller provides a buyer with goods or services and promises in return to purchase goods or services from the buyer”. Countertrade may or may not involve the use of currency, as in barter. Forms of Countertrade Barter The direct exchang