李蕾商务英语函电课后题答案7.docVIP

Unit Seven Terms of Payment Part Five: Exercises I. Answer the following questions: 1. The methods of payment we use in the financing of international trade are chiefly the Letter of Credit, Collection and Remittance. 2. The most-often-used method of payment in our international trade is the L/C which is a reliable and safe method of payment. It not only facilitates trade with unknown buyers and sellers, but also gives protection to both sellers and buyers. 3. The parties in connection with an L/C are: 1 Applicant Importer/Buyer ; 2 Issuing Bank Opening Bank ; 3 Beneficiary Seller/Exporter ; 4 Advising Bank Notifying Bank ; 5 Negotiating Bank; 6 Paying Bank. 4. The issuance of a letter of credit stars with the buyer who instructs his bank to issue an L/C for his account in favor of the seller for the amount of the purchase. The buyer’s bank the opening bank sends the L/C to its correspondent bank in the seller’s country, giving instructions about the amount of the credit, the beneficiary, the currency, the documents required and other special instructions. On receipt of it, the correspondent advises the seller of the receipt of the credit. Sometimes a seller requires a confirmed L/C. In this case, the correspondent usually adds its confirmation and advises the seller of the same. Hence, the correspondent has become the confirming bank. Then the seller will dispatch the goods accordingly. 5. To the seller’s benefit, D/P is safer and better, because it calls for actual payment against transfer of shipping documents. However, in the case of D/A, the buyer can get hold of the shipping documents against his acceptance, which merely is a promise to pay after certain days. 6. In order to let the seller have ample time to prepare for shipment, the L/C reach the seller at least one month prior to the time of shipment. 7. No, it isn’t. We must realize that there may be circumstances beyond his control that preclude him from doing so. Therefore, before we have a