07级谢婧.doc

201109考试批次 《商贸英语》大作业 学生姓名 号专 业 Mention some of the risks the exporter and the importer may face in trade. To exporters, they are those who provide goods, the main risk whether they can get full payment or not after they ship their goods overseas to the buyers. They may be affected by the flutuating cost of raw materials for products and exchange rate. And there is also risks in transportation from exporters side to the importers side. Whats more, the political status of an importers country and districts will have an effect on the receipt of payment. To importers, they are those who pay the money and want to get the goods that they require. They face the risk of getting no goods or goods that are not as per required quality, quantity and timely delivery time after paying the exporters money. For instance, if they receive the goods late, they may not be able to sell out the goods in that season. It is also risky that the exporters tell their program and designs to other people so that there are too many competitors in the markets, and then once they receive the goods, they cannot sell the goods well, either. Explain briefly the following methods of payment: cash in advance, open account, consignment transactions. Cash in advance : For this form of payment, the risk for the buyer is very great, and for the seller very little. And partical cash in advance is often used in combination with other forms of payment. Open account: It is actually credit provided by the seller to the buyer. High risks are involved for the seller who generally does not use this form of payment unless he has adequate trust in the credit worthiness of the buyer. Consignment transation: i.e. The exporter entrusts his goods to his agent abroad for sale. The exporter retains title to the goods with all the relevant responsibility and risks before they are sold, and the agent gets commission after the goods are sold. What is the unique feature of the letter of credit? How does it offer secur