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CERTIFICATE IN EXPORT MANAGEMENT SERIES(2008)

Author:  John R. Jagoe, Managing Director, The Export Institute of the United States

1. FACTORS TO BE CONSIDERED IN DETERMINING THE METHODS OF EXPORT PAYMENT YOU WILL ACCEPT:
• What is the competitive situation in individual export markets?
• Does your profit margin justify extending credit or should you raise prices?
• How will deferred payments affect your cash flow and day-to-day operations?
• What is the stability and financial risk involved in dealing with each country?
2. METHODS OF PAYMENT FOR YOUR EXPORT SALES:
• Cash in Advance of Shipment:
• Transaction Flow Chart: Cash in Advance of Shipment
• Letter of Credit (L/C):
• Parties involved in a letter of credit transaction
• Advised, confirmed and irrevocable letters of credit
• List: Exporter's Checklist for Analyzing Letters of Credit
• Amendments and correction of discrepancies in letters of credit
• Common discrepancies in letters of credit received by banks
• Transaction Flow Chart: Payment by Sight Draft with Letter of Credit
• Transaction Flow Chart: Payment by Time Draft with Letter of Credit
• Example of: Transferable Letter of Credit
• Example of: Assignment of Proceeds Letter of Credit
• Example of: Back-To-Back Letter of Credit
• Example of: Red Clause Letter of Credit
• Example of: Revolving Letter of Credit
• Example of: Standby Letters of Credit
• Collections (without the use of a letter of credit):
• Transaction Flow Chart: Documents Against Payment (D/P) by Sight Draft
• Transaction Flow Chart: Documents Against Payment (D/P) by Time Draft
• Open Account:
• Transaction Flow Chart: Consignment of Goods
• Consignment of Goods:
• Transaction Flow Chart: Consignment of Goods
3. HEDGING AGAINST FOREIGN CURRENCIES
• Example of: Hedging of an Export Transaction (Open Account)
4. FINANCING OR SELLING EXPORT ACCOUNTS RECEIVABLE:
• Example of Direct Financing of Accounts Receivable
• Example of: Factoring of Accounts Receivable
• Example of: Forfeiting of Accounts Receivable
5. BARTER OR COUNTERTRADE:
• Barter:
• Countertrade:
• Compensation Transaction
• Counterpurchase
• Offset
• Product Buyback