第九章97.pptVIP

Money of Account Money of payment Money of account计价货币 is the currency used for price calculation. Money of payment支付货币 is the currency for settlement. Currency of account and payment can be the home currency of the exporter, the importer’s currency or a third currency upon which the two parties have agreed. When choosing the currency, the exporter should take foreign exchange rates into consideration. When the dollar is strong, we call it hard currency, which means currency that is reliable and stable and more in demand. When the opposite is true, we call it soft currency, which means currency that is unstable (uneven) in value. The dollar is as good as gold. It has become the vehicle currency通行货币for most international transactions because it is the world’s major trading currency. Foreign Exchange Risk The strength and popularity (reputation) of currencies is cyclic轮转的, the dollar is not always leader. Often, an exporter hopes pricing products or services in currencies other than United States dollars. In the current era of floating exchange rates, there are risks whenever there is cash flows in foreign currencies. Successfully managing currency risk is imperative (crucial). The best business decision for an importer/ exporter is to hedge or cover in the forward market期货市场上套期交易. Use the forward rate套汇汇率for the date on which payment is required. This rate that avoids all foreign exchange risk, is simple, and is inexpensive. commission Whether a commission is made depends on which channel the goods are sold through. If an overseas agent is employed, as a rule, his commission is usually given on a percentage basis. Commission may or may not be included in the price. For example, “US$200Per M/T CIFC2% London” or “C2%” means 2% of commission is included in the export price and given to the middleman. Discount Discount is a certain percent of price reduction, a special favor given by the exporter to the importer. There are different types of discount such a