Gap filling Chapter 2 Flashcards
In negotiating price and payment, exporters should …………… a price that relates to the complete set of contract terms.
QUOTE
As items in the contract are negotiated, the exporter should assess the influence of each factor on price, and ……………. the price accordingly.
ADJUST
Payment should be negotiated so that the exporter secures …………….., and correct payment.
PROMPT
Payment on ……….. ……………. is often timed so that early payment secures a discount for the buyer; this benefits the exporter by improving cash flow.
OPEN ACCOUNT
The exporter prefers the place of payment to be his own bank account; payment is not deemed to be made until the money is at his ……………… .
DISPOSAL
Late payment causes harm to the exporter – the bank interest he must pay while waiting for his money. This interest should be ………….. to him by the buyer under the terms of the contract.
COMPENSATED
Letters of credit are made safe for exporter and buyer by two principles: …………. and strict compliance.
AUTONOMY
Credits are of many types. For the exporter, the most advantageous type is the irrevocable, ……………….., at sight letter of credit.
CONFIRMED
………………. L/C is issued by the seller’s bank to protect the right of the buyer if the seller fails to make delivery to the buyer. (L/C dự phòng)
STAND-BY
……………….. L/C has a special condition that authorizes any nominated bank to make advances to the beneficiary before presentation of the documents. (Cho phép tạm ứng mà không cần giấy tờ )
RED-CLAUSE
Export credit insurance covers the risk of ………………………..
NON-PAYMENT
Guarantees are designed to reduce ………… risks.
CONTRACTUAL
The letter of credit is an agreement by a bank to pay money against ……………….. It is a separate agreement from the sales contract and is unconnected with it.
DOCUMENTS
The letter of credit is issued by an issuing bank at the request of ………………..
THE BUYER
In L/C, the bank will pay only if the shipping documents are ……………….. in line with the buyer’s instructions. be in line with: ăn khớp
EXACTLY
Once the bank has indicated any discrepancy, the exporter can ask the buyer to instruct the bank to change the terms of L/C – i.e. to issue an ………………………….
AMENDMENT
For the case of making advance payments, prepayment guarantee (giấy đảm bảo trả tiền cọc) by a bank to protect a buyer from …………………. by the seller.
NON-DELIVERY
A payment guarantee simply commits the bank to pay if the buyer ………………… (Vi phạm hợp đồng)
DEFAULTS
The performance guarantee (giấy bảo đảm thực hiện thanh toán) reduces the risk of non-performance or …………… performance by the exporter.
INADEQUATE
The tender guarantee guards (=protects) the employer against the risk of a project falling behind because the tender is ………………..
WITHDRAWED
For the seller, the most favourable method of payment is the …………….. for the importer, …………… is most favourable.
AT SIGHT CONFIRMED IRREVOCABLE L/C
EXPORT CREDIT INSURANCE
Terms of payment are a key factor in setting ___
PRICE
Delay in payment is always ___ for the seller
EXPENSIVE
A …………… for ___ settlement can speed up payment
DISCOUNT
EARLY
