Match each foreign trade payment method or instrument with its defining operational characteristic.
- Irrevocable Letter of CreditA bank guarantee guaranteeing payment to the seller upon presentation of compliant shipping documents, which cannot be amended without mutual consent.
- Usance Bill of ExchangeA written order drawn by the exporter allowing the importer a credit period before settling the debt on a specified future maturity date.
- Telegraphic TransferPayment is made electronically through banking telecommunication channels immediately upon instruction.
- Open Account TradingGoods are dispatched and delivered to the buyer prior to payment, transferring maximum financial risk to the exporter.
Cevap
Irrevocable Letter of Credit matches with the bank guarantee of payment upon presentation of compliant documents. Usance Bill of Exchange matches with the written order allowing a credit period to settle on a future maturity date. Telegraphic Transfer matches with electronic payment via banking telecommunication channels. Open Account Trading matches with goods being delivered before payment, placing maximum risk on the exporter.
Each instrument accurately corresponds to its foreign trade payment mechanism: Irrevocable Letter of Credit acts as a binding bank commitment; Usance Bill of Exchange provides time credit before settlement; Telegraphic Transfer is direct fast electronic remittance; Open Account involves shipping prior to receiving payment.
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Anahtar Kavram
Means of Payment in Foreign Trade