Unit Ten(正式)上课(第1节).pptVIP

Unit Ten International Trade Payment Learning objectives 1.To learn the most commonly used instruments of payment; 2.To learn the modes of payment; 3.Master the relevant expressions; Introduction Compared with payment arrangements for domestic transaction, international payment arrangements are much complicated 、difficult and full of risks; The seller may be at the risk of losing payment after sending goods; and the buyer may be at the risk of losing goods after paying. This unit will focus on time of payment, instruments of payment, modes and terms of payment in international trade of goods. Section one: time of payment 1.Payment prior to delivery 2.Payment against delivery 3.Payment after delivery Section two: instruments of payment Instruments: cash non-cash (bills) keeping accounts according to trade agreement; International trade features: 1.Hardly possible for the seller to deliver the goods and the buyer to make the payment face to face; 2.usually, the seller delivers the goods over the documents, and the buyer makes payment against documents; 3.Banks are intermediaries, and non-cash payment (bills) are instruments of payment; 4.Bills of exchange, promissory notes and cheques. 1.Bills of exchange (draft) Definition: a bill of exchange is a written, dated and signed instrument that contains an unconditional order from the drawer that directs the drawee to pay a definite sum of money to a payee on demand or at a specified future date. *It is a useful instrument because it allows one party to direct another to pay money either to himself, or to his agent, or to a third party. *Validity: the drawee has an underlying obligation to pay money to the drawer. Situations: 1)The drawee is holding money on account of the drawer; 2)Drawer lent money to a drawee; 3)The drawer has sold goods to the drawee and the drawee owes the sale price to the drawer. Contents: 1.Indicating the word “draft” or “exchange”; 2.An unconditional order in writing; 3.C