Finance of international trade

[...]... the requirements of the Bills of Exchange Act 1882 In use throughout the world for over 500 years the reliability of the bill of exchange is demonstrated by the fact that the 1882 Act has hardly been amended in over 120 years As a means of settlement and proof of payment or non-payment in legal actions, the bill of exchange has no equal 13 14 Finance of International Trade To conform with the 1882... versions of countertrade have been developed whereby payment for exports is made by a combination of goods, services, currency and franchises Apart from assisting cash-short countries to purchase essential goods, countertrade also enables exporters to find additional outlets for their products In line with the development of e-commerce a group of banks, carriers and insurers involved with international trade. .. electronic system designed to speed up the movement of documents and methods of settlement The system is known as Bolero and its application and advantages are dealt with in detail It will have an undoubted impact on international trade, particularly in the prevention of fraud This book examines in depth the whole range of settlement methods for international trade, the risks involved, the contractual relationships... economies of many countries is demonstrated by the wide range of support and encouragement given by governments, particularly through Export Credit Agencies (ECAs) These agencies offer facilities for promoting exports and allowing exporters to 2 Finance of International Trade compete with overseas competitors who often enjoy the advantages of lowcost labour and raw materials Multinational groups have... by banks in trade finance cannot be over-stressed They provide a multitude of services to every operator in the trade chain and for every stage of any transaction Banking instruments and techniques which have been developed over hundreds of years are made available with world-wide branch networks, affiliates and correspondents The rapid growth of world markets owes much to the ability of these financial... bonus that they often enjoy financial participation from their governments 7 8 Finance of International Trade Factors Although factors were once in fierce competition with banks, particularly in the financing of receivables, the banks quickly realised that there was a niche for factoring in their own organization and the major banks took over a number of the leading operators Now, most international. .. On-Demand Guarantees International Standby Practices No trade transaction can be set in motion without some form of marine insurance to cover the risks inherent in transportation of goods The Institute of London Underwriters has drawn up a wide range of clauses known as Institute Cargo Clauses to cover the movement of most manufactured goods, plus specific clauses for a variety of raw materials, frozen... JUNE 2003 pay this FIRST of Exchange, (Second of the same tenor and date unpaid) to the order of LLOYDS BANK PLC THE SUM OF FIFTY THOUSAND POUNDS Value Received 135,000 mtrs Gingham Fabric covering contract Number PK0-100 shipped per “YUKIKAZE” VOY: 37 To ARMSTRONG BAER INC LENNOX PARADE HOUSTON, USA Figure 2.2 SEDDON & CO THE BULLRING BIRMINGHAM, UK 15 16 Finance of International Trade At this point it... publications are useful reading for students of trade finance and highlight the difficulties which often confront banks in their attempts to keep within the rules Standby credits This is a relatively new instrument, devised in the United States as a means of countering laws which forbid US and Japanese banks to issue on-demand 19 20 Finance of International Trade guarantees It is known as a negative credit... insurance groups provide a wide range of cover against marine and war risks, and in many cases write specific policies for individual commodities For example, the risks involved in carrying a cargo of liquid gas are entirely different from those likely to arise when carrying wheat, 5 6 Finance of International Trade sugar or frozen products The value to banks of having shipments properly insured by . h0" alt="" Finance of International Trade Essential Capital Markets Books in the series: Cash Flow Forecasting Corporate Valuation Credit Risk Management Finance of International Trade Mergers. for international trade settlement162 Bolero 162 Chapter 12 Prevention of fraud in international trade 166 What measures can be taken to minimize the risk of fraud? 166 Appendix 1 Trade finance. These agencies offer facilities for promoting exports and allowing exporters to Finance of International Trade compete with overseas competitors who often enjoy the advantages of low- cost labour