国际商务洽谈口语教程Unit 6 Negotiating payment terms.ppt

Unit 6 Negotiating Payment Terms Warm-up How do you pay when you go shopping at a local store? For example, when you buy a mobile phone set? Can you pay the same way if you buy the kiosk from Sigma? Why? How can we solve the problem? Major concerns with payment in global trade Risk control Global trade is full of financial risks Costs Some payment like L/C is safe but costly Balance between sales and risks Good balance could boost sales while reducing risks at a tolerable level Remittance 汇款 Mail Transfer(M/T): 信汇 transferred by mail The buyer hands over the payment to remitting bank that will authorize the bank in the sellers country by mail to make the payment to him Telegraphic Transfer(T/T): 电汇transferred by telegraphic means more expensive but much faster than M/T Caution: Fast but risky to the buyer for payment in advance When to use? Facilitating sales but risk control Remittance: Risk Control The buyer needs to take control of the risk Often used for a small order A large sum of remittance is risky to the buyer Also used as a downpayment of a larger order Downpayment is a part of the whole payment Collection: D/A D/A: Delivery against Acceptance (承兑交单) The seller ships the goods first along with a draft which specifies date for the buyer to pay. Then the buyer can take the goods first with a promise that he will pay when it is due. If he fails to keep his promise, the seller will not get the payment. (Draft , a written order directing the payment of money from an account.) So, D/A has no protection to the exporter. Collection: D/P D/P: Delivery against Payment （付款交单） The seller also has to ship the goods first But he has to pay before taking goods If the buyer fails to pay, it is costly to get the goods back from another country. So, D/P offers limited protection to the seller. Collection: Risk Control The seller has to take control of the Risks by Keeping the order smaller Appointing an