Unit 5Terms of Payment 商务函电课件PPT.pptVIP

English for International Business Communication Unit Five Terms of Payment I. Teaching Aims Requirements: 1.Students will get a general knowledge of the terms of payment in International Trade Business, including the Letter of Credit which is the one most often adopted in International Cargo Trade. 2.Students will study the example letters regarding payment and payment terms and learn some useful words and expressions in this respect. 3.Students will learn how to write such kind of letters, especially the letters asking for amendment to L/C. II. Resources/Materials: III. Activities and Procedures: Part One: Study of Background Knowledge 1.International trade payment is rather comp- licated. In foreign trade, buyers and sellers are in two countries. Sometimes, they have to do business with unknown buyers. If the seller delivers goods before payment has been made, he runs certain risks of nonpayment of the buyer, and if the buyer makes payment in advance, he likewise runs risks of non-delivery of the goods. It becomes necessary for a third party to act as an intermediate between them to solve the problem of payment. This party is the bank, who either guarantees payment to the seller and examines the seller’s shipping documents for the buyer or makes collection for the seller. Part One: Study of Background Knowledge 2. Methods of payment in international trade The methods we use of payment in the financing of international trade are Letter of Credit Collection Remittance The Letter of Credit 1) What is an L/C? It is a written promise made by a bank that it will make payment for the goods shipped. That is to say, the bank promises to pay for the goods when it opens a letter of credit. The Letter of Credit 2) The advantage of payment by L/C: The most generally-used method of payment in our international trade is the L/C which is a reliable and safe method of payment. It not only f