Unit2ExportingImportingCountertradeUnitobjectives•Informationsourcesforexportopportunities•Exportandimportfinancing•Processofinternationaltradetransaction•CountertradeInformationSourcesforExporting•Tradeassociations•Governmentagencies•CommercialbanksJapanMITIsogoshoshaGermantradeassociationU.SDepartmentOfCommerceExportandImportFinancingtheproblemininternationaltradeislackoftrustPreferenceofexporter1Importerpaysforgoods2ExportershipsgoodsafterbeingpaidPreferenceofimporter1Importershipsgoods2ExporterpaysaftergoodsarereceivedImporterExporterImporterExporterUsingthethirdparty—BankImporterExporterBank1Importerobtainsbank’spromise2Bankpromisesexportertopay3Exportershipsgoods4Bankpaysexporter5Bankgivesgoodstoimporter6ImporterpaysbankLetterofCreditLetterofcredit(L/C)standsatthecenterofinternationalcommercialtransactions.Issuedbyabankattherequestofanimporter,L/Cstatesthatbankwillpayaspecificsumofmoneytoabeneficiary,normallytheexporter,onpresentationofparticularandspecifieddocuments.HOWL/CISCONVEYEDFROMBUYERTOSELLERDraft(Billofexchange)Adraftisanorderwrittenbyanexporterinstructinganimporter,oranimporter’sagenttopayaspecifiedamountofmoneyataspecifiedtime.Detailsonadraft•Maker:thepersonorbusinessinitiatingthedraft•Drawee:thepartytowhomthedraftispresented•Sightdraftispayableonpresentationtothedrawee.•Timedraftallowsforadelayinpayment–normally30,60,90,or120days.•Banker’sacceptance:whenatimedraftisdrawnonandacceptedbyabank.•Tradeacceptance:whenatimedraftisdrawnonandacceptedbyabusinessfirmBillofladingBillofladingisissuedtotheexporterbythecommoncarriertransportingthemerchandise.Itservesthreepurposes:1.Areceipt2.Acontract3.AdocumentoftitleTypicalinternationaltradetransactionCountertradeCountertradedenotesawholerangeofbarter-likeagreements;itsprincipleistotradegoodsandservicesforothergoodsandserviceswhentheycannotbetradedformoney.ExampleofcountertradeSaudiArabiacrudeoilBoeing747jetCompensation/BuybackSwitchTradingOffsetCounter-purchaseBarterTypesofcountertradeProsandConsofcountertradeAwaytofinanceanexportdealwhenothermeansarenotavailableAllowfirmstoremaincompetitivewithothermajorcompetitorswhoaregoodatcountertrade.InvolvesunusableorpoorqualitygoodsRequiresfirmtoinvestinanin-housetradingdepartmentdedicatedtomanagingcountertradedeals.Keyterms•Letterofcredit•Draft/billofexchange•billoflading•Sightdraft•Timedraft•Banker’sacceptance•Tradeacceptance•Countertrade•Barter•Switchingtrading•Offset•信用证•汇票•提单•即期汇票•远期汇票•银行承兑•商业承兑•对等贸易•易货贸易•转手贸易•抵销Discussion•Whatchangesdoesinformationtechnologybringtothepracticeofexportandimport?DoyouknowEDI?Whatbenefitsdoesithave?•Howdoyouseethedevelopmentofcountertrade?Underwhatscenariosmightitspopularityincreaseintheyearstocome?