最新multinational financial management（跨国公司财务）ch18 international trade financing(共26张ppt课件).pptx

CHAPTER 18International Trade Financing 第一页，共二十六页。PAYMENT TERMSI. PAYMENT TERMSA. Four Principal Means:1.Cash in advance2.Letter of Credit3.Drafts4.Open Account第二页，共二十六页。PAYMENT TERMSB. Cash in Advance1.Minimal risk to exporter2.Used where there isa. Political unrestb.Goods made to orderc.New and unfamiliar customer第三页，共二十六页。PAYMENT TERMSC. Letter of Credit (L/C)1.A letter addressed to sellera.written and signed by buyers bankb.promising to honor sellers drafts. c.Bank substitutes its own commitmentd.Seller must conform to terms第四页，共二十六页。PAYMENT TERMS2. Advantages of an L/C to Exportera.eliminates credit riskb.pre-shipment (cancellation of the order) risk protection第五页，共二十六页。PAYMENT TERMS3. Advantages of L/C to Importera.shipment assuredb.documents inspectedc.may allow better sales termsd.relatively low-cost financinge. if easy cash recovery 第六页，共二十六页。PAYMENT TERMS4. Types of L/Csa.documentaryb.irrevocablec.confirmed第七页，共二十六页。PAYMENT TERMSD.DRAFTS1.Definition:- unconditional order in writing- exporters order for importer to pay - at once (sight draft) or- in future (time draft)第八页，共二十六页。PAYMENT TERMS2. Three Functions of Draftsa.clear evidence of financial obligationb.reduced financing costsc.Can be a financial product for investors(i.e. May be converted to a bankers acceptance)第九页，共二十六页。PAYMENT TERMS3. Types of Draftsa.sightb.time第十页，共二十六页。PAYMENT TERMSF.OPEN ACCOUNT1.Creates a credit sale2.To importers advantage3.More popular lately becausea.major surge in global tradeb.credit information improvedc.more global familiarity with exporting第十一页，共二十六页。PAYMENT TERMS4.Benefits of Open Accounts:a.greater flexibility in making a tradeb.lower transactions costs5.Major disadvantage:highly vulnerable to government currency controls.第十二页，共二十六页。DOCUMENTSII.DOCUMENTS USED IN INTL TRADEA.Three most used documents1. Bill of Lading (most important)2. Commercial Invoice3. Insurance Certificate第十三页，共二十六页。DOCUMENTSB. Bill of LadingThree functions:1.Acts as a contract to carry the goods.2.Acts as a shippers receipt3. Establishes ownership over goods if negotiable type.第十四页，共二十六页。DOCUMENTSC.COMMERCIAL INVOICEPurpose:1.Lists full details of goods shipped2.Names of importer/exporter given3.Identifies payment terms4.List charges for transport and insurance.第十五页，共二十六页。DOCUMENTSD.INSURANCE1.Marine Insurance Policycovers sea as well as air transport2.Insurance Certificate issued to show proof of insurance第十六页，共二十六页。SHORT-TERM FINANCING TECHNIQUESIII. FINANCING TECHNIQUESA.Four Types:1.Bankers Acceptancesa. Creation: drafts acceptedb. Terms: Payable at maturity to holder第十七页，共二十六页。SHORT-TERM FINANCING TECHNIQUES2. Discountinga.Converts exporters drafts to cashminus interest to maturity and commissions.b.Low cost financing with few feesc.May be with (exporter still liable) or without recourse(bank takesliability for nonpayment).第十八页，共二十六页。SHORT-TERM FINANCING TECHNIQUES3. Factoringfirms sell accounts receivable to another firm known as the factor.a.Discount charged by factorb.Non-recourse basis: Factor assumes all payment risk.c.When used:1.)Occasional exporting2.)Clients geographically dispersed.第十九页，共二十六页。SHORT-TERM FINANCING TECHNIQUES4. Forfaitinga.Definition:discounting at a fixed rate without recourse for medium-term accounts receivable b.Use: Large capital purchasesc.Most popular in W. Europe第二十页，共二十六页。GOVERNMENT SOURCESIV.GOVERNMENT SOURCES OF EXPORTFINANCING AND CREDIT INSURANCEA.Export-Import Bank of the U.S.-known as Ex-Im Bank-finances and facilitates U.S. exports only. 第二十一页，共二十六页。GOVERNMENT SOURCES1. Ex-Im Bank Programs:a.Direct loans to exportersb.Intermediate loans to exportersc.Loan guaranteesd.Preliminary commitmentse.Political and commercial insurance第二十二页，共二十六页。GOVERNMENT SOURCES2. Restrictions: At least 51% U.S. contentNo armaments Must be environmentally friendly第二十三页，共二十六页。COUNTERTRADEV.COUNTERTRADEA. Three Specific Forms:1.Barterdirect exchange in kind2.Counterpurchasesale/purchase of unrelated goods but with currencies3.Buybackrepayment of original purchase through sale of a related product第二十四页，共二十六页。COUNTERTRADEB. When to Use Countertrade1.with developing countries with “soft-currency” 2.when tariffs or quotas prevent trade第二十五页，共二十六页。内容(nirng)总结CHAPTER 18。d.relatively low-cost financing。4.Types of L/Cs。2.To importers advantage。1.Ex-Im Bank Programs:。A.Three Specific Forms:。trade第二十六页，共二十六页。