Multinational-Financial-Management(跨国公司财务管理)Multin

MultinationalFinancialManagement（跨国公司财务管理）ch18InternationalTradeFinancingMultinationalFinancialManagePAYMENTTERMSI. PAYMENTTERMS A. FourPrincipalMeans: 1. Cashinadvance 2. LetterofCredit 3. Drafts 4. OpenAccountPAYMENTTERMSI. PAYMENTTERMSPAYMENTTERMS B. CashinAdvance 1. Minimalrisktoexporter 2. Usedwherethereis a. Politicalunrest b. Goodsmadetoorder c. NewandunfamiliarcustomerPAYMENTTERMS B. CashinAdvanMultinational-Financial-Management(跨国公司财务管理)MultinMultinational-Financial-Management(跨国公司财务管理)MultinPAYMENTTERMS 3. AdvantagesofL/CtoImporter a. shipmentassured b. documentsinspected c. mayallowbettersalesterms d. relativelylow-costfinancing e. ifdiscrepancies,easycashrecovery PAYMENTTERMS 3. AdvantagesofPAYMENTTERMS

4. TypesofL/Cs a. documentary b. irrevocable c. confirmed

PAYMENTTERMS 4. TypesofL/CsPAYMENTTERMSD. DRAFTS 1. Definition: -unconditionalorderinwriting -exporter’sorderforimportertopay -atonce(sightdraft)or -infuture(timedraft)PAYMENTTERMSD. DRAFTSPAYMENTTERMS 2. ThreeFunctionsofDrafts a. clearevidenceoffinancialobligation b. reducedfinancingcosts c. Canbeafinancialproductfor investors (i.e.Maybeconvertedtoa banker’sacceptance)PAYMENTTERMS 2. ThreeFunctioPAYMENTTERMS 3. TypesofDrafts a. sight b. time

PAYMENTTERMS 3. TypesofDrafPAYMENTTERMSF. OPENACCOUNT 1. Createsacreditsale 2. Toimporter’sadvantage 3. Morepopularlatelybecause a. majorsurgeinglobaltrade b. creditinformationimproved c. moreglobalfamiliaritywith exportingPAYMENTTERMSF. OPENACCOUNTPAYMENTTERMS 4. BenefitsofOpenAccounts: a. greaterflexibilityinmakinga trade b. lowertransactionscosts 5. Majordisadvantage: highlyvulnerabletogovernment currencycontrols.PAYMENTTERMS 4. BenefitsofDOCUMENTSII. DOCUMENTSUSEDININT’LTRADE A. Threemostuseddocuments 1.BillofLading(mostimportant) 2.CommercialInvoice 3.InsuranceCertificate

DOCUMENTSII. DOCUMENTSUSEDINDOCUMENTS

B. BillofLading Threefunctions: 1. Actsasacontracttocarry thegoods. 2. Actsasashipper’sreceipt 3. Establishesownership over goodsifnegotiabletype.DOCUMENTS B. BillofLadingDOCUMENTSC. COMMERCIALINVOICE Purpose: 1. Listsfulldetailsofgoodsshipped 2. Namesofimporter/exportergiven 3. Identifiespaymentterms 4. Listchargesfortransportand insurance.DOCUMENTSC. COMMERCIALINVOICEDOCUMENTSD. INSURANCE 1. MarineInsurancePolicy coversseaaswellasairtransport 2. InsuranceCertificateissuedtoshow proofofinsurance

DOCUMENTSD. INSURANCESHORT-TERM

FINANCINGTECHNIQUESIII. FINANCINGTECHNIQUES A. FourTypes: 1. Bankers’Acceptances a.Creation:draftsaccepted b.Terms:Payableatmaturity toholder

SHORT-TERMFINANCINGTECHNIQUESHORT-TERM

FINANCINGTECHNIQUES

2. Discounting a. Convertsexporters’draftstocash minusinteresttomaturityand commissions. b. Lowcostfinancingwithfewfees c. Maybewith(exporterstillliable) orwithoutrecourse(banktakes liabilityfornonpayment).SHORT-TERMFINANCINGTECHNIQUESHORT-TERM

FINANCINGTECHNIQUES

3. Factoring firmssellaccountsreceivabletoanother firmknownasthefactor. a. Discountchargedbyfactor b. Non-recoursebasis:Factorassumes allpaymentrisk. c. Whenused: 1.) Occasionalexporting 2.) Clientsgeographicallydispersed.SHORT-TERMFINANCINGTECHNIQUESHORT-TERM

FINANCINGTECHNIQUES

4. Forfaiting a. Definition: discountingatafixedratewithout recourseformedium-termaccounts receivable b. Use:Largecapitalpurchases c. MostpopularinW.EuropeSHORT-TERMFINANCINGTECHNIQUEGOVERNMENTSOURCESIV. GOVERNMENTSOURCESOFEXPORT FINANCINGANDCREDIT INSURANCE

A. Export-ImportBankoftheU.S. -knownasEx-ImBank -financesandfacilitatesU.S. exportsonly.GOVERNMENTSOURCESIV. GOVERNMEGOVERNMENTSOURCES 1. Ex-ImBankPrograms: a. Directloanstoexporters b. Intermediateloanstoexporters c. Loanguarantees d. Preliminarycommitments e. Politicalandcommercialinsurance GOVERNMENTSOURCES 1. Ex-ImBaGOVERNMENTSOURCES 2. Restrictions: Atleast51%U.S.content Noarmaments MustbeenvironmentallyfriendlyGOVERNMENTSOURCES 2. RestrictCOUNTERTRADEV. COUNTERTRADE

A. ThreeSpecificForms: 1. Barter directexchangeinkind 2. Counterpurchase sale/purchaseofunrelatedgoods butwithcurrencies 3. Buyback repaymentoforiginalpu