搜索
1MultinationalFinancialManagementAlanShapiro7thEditionJ.Wiley&SonsPowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton2FINANCINGFOREIGNTRADECHAPTER183CHAPTEROVERVIEW:I.PAYMENTTERMSII.DOCUMENTSIII.FINANCINGTECHNIQUESIV.GOVERNMENTSOURCESOFEXPORTFINANCINGANDCREDITINSURANCEV.COUNTERTRADE4I.PAYMENTTERMSI.PAYMENTTERMSA.FivePrincipalMeans:1.Cashinadvance2.LetterofCredit3.Drafts4.Consignment5.OpenAccount5PAYMENTTERMSB.CashinAdvance1.Minimalrisktoexporter2.Usedwherethereisa.Politicalunrestb.Goodsmadetoorderc.Newunfamiliarcustomer6PAYMENTTERMSC.LetterofCredit(L/C)1.Aletteraddressedtosellera.writtenandsignedbybuyer’sbankb.promisingtohonorseller’sdrafts.c.Banksubstitutesitsowncommitmentd.Sellermustconformtoterms7PAYMENTTERMS2.AdvantagesofanL/CtoExportera.eliminatescreditriskb.reducesdefaultriskc.paymentcertaintyd.prepaymentriskprotectione.financingsource8PAYMENTTERMS3.AdvantagesofL/CtoImportera.shipmentassuredb.documentsinspectedc.mayallowbettersalestermsd.relativelylow-costfinancinge.easycashrecoveryifdiscrepancies9PAYMENTTERMS4.TypesofL/Csa.documentaryb.non-documentaryc.revocabled.irrevocablee.confirmedf.transferable10PAYMENTTERMSD.DRAFTS1.Definition:-unconditionalorderinwriting-exporter’sorderforimportertopay-atonce(sightdraft)or-infuture(timedraft)11PAYMENTTERMS2.ThreeFunctionsofDraftsa.clearevidenceoffinancialobliga-tionb.reducedfinancingcostsc.providesnegotiableanduncondi-tionalfinancialinstrument(ie.Maybeconvertedtoabanker’sacceptance)12PAYMENTTERMS3.TypesofDraftsa.sightb.timec.clean(nodocumentsneeded)d.documentary13PAYMENTTERMSE.CONSIGNMENT1.Exporter=theconsignor2.Importer=theconsignee3.Consigneeattemptstosellgoodstoathirdparty;keepssomeprofit,remitsresttoconsignor.4.Use:Betweenaffiliates14PAYMENTTERMSF.OPENACCOUNT1.Createsacreditsale2.Toimporter’sadvantage3.Morepopularlatelybecausea.majorsurgeinglobaltradeb.creditinformationimprovedc.moreglobalfamiliaritywithexporting.15PAYMENTTERMS4.BenefitsofOpenAccounts:a.greaterflexibilityinmakingatradeb.lowertransactionscosts5.Majordisadvantage:highlyvulnerabletogovernmentcurrencycontrols.16II.DOCUMENTSII.DOCUMENTSUSEDININT’LTRADEA.Fourmostuseddocuments1.BillofLading(mostimportant)2.CommercialInvoice3.InsuranceCertificate17DOCUMENTSB.BillofLadingThreefunctions:1.Actsasacontracttocarrythegoods.2.Actsasashipper’sreceipt3.Establishesownershipovergoodsifnegotiabletype.18DOCUMENTS2.TypeofBillsa.Straightb.Orderc.On-boardd.Received-for-shipmente.Cleanf.Foul19DOCUMENTSC.COMMERCIALINVOICEPurpose:1.Listsfulldetailsofgoodsshipped2.Namesofimporter/exportergiven3.Identifiespaymentterms4.Listchargesfortransportandinsurance.20DOCUMENTSD.INSURANCE1.TwoCategories:a.Marine:transportbyseab.Air:transportbyair2.InsuranceCertificateissuedtoshowproofofinsurance3.Allshipmentsinsuredtoday.21DOCUMENTSE.CONSULARINVOICELocalconsulateinhostcountryissues:•avisafortheexporter’sinvoice•requiresfeetobepaidtoconsulate22III.FINANCINGTECHNIQUESIII.FINANCINGTECHNIQUESA.FourTypes:1.Bankers’Acceptancesa.Creation:draftsacceptedb.Terms:Payableatmaturitytoholder23FINANCINGTECHNIQUES2.Discountinga.Convertsexporters’draftstocashminusinteresttomaturityandcommissions.b.Lowcostfinancingwithfewfeesc.Maybewith(exporterstillliable)orwithoutrecourse(banktakesliabilityfornonpayment).24FINANCINGTECHNIQUES3.Factoring-firmssellaccountsreceivabletoanotherfirmknownasthefactor.a.Discountchargedbyfactorb.Non-recoursebasis:Factorassumesallpaymentrisk.c.Whenused:1.)Occasionalexporting2.)Clientsgeographicallydispersed.25FINANCINGTECHNIQUES4.Forfaitinga.Definition:discountingatafixedratewithoutrecourseofmedium-termaccountsreceivabledenominatedinafullyconvertiblecurrency.b.Use:Largecapitalpurchasesc.MostpopularinW.Europe26IV.GOVERNMENTSOURCESOFEXPORTFINANCINGIV.GOVERNMENTSOURCESOFEXPORTFINANCINGANDCREDITINSURANCEA.Export-ImportBankoftheU.S.-knownasEx-ImBank-financesandfacilitatesU.S.exportsonly.27GOVERNMENTSOURCESOFEXPORTFINANCING1.Ex-ImBankPrograms:a.Directloanstoexportersb.Intermediateloanstoexportersc.Loanguaranteesd.Preliminarycommitmentse.Politicalandcommercialinsurance28GOVERNMENTSOURCESOFEXPORTFINANCINGB.PrivateExportFundingCorporation(PEFCO)1.Financeslargesalesfromprivatesources2.MaypurchaseloansofU.S.importers3.ExImBankprovidesloanguarantees.29GOVERNMENTSOURCESOFEXPORTFINANCINGC.ForeignCreditInsuranceAssociation(FCIA)1.Offerscommercialandpoliticalriskinsurance2.Wheninsured,exporteroftenabletoobtainfinancingfaster.30V.COUNTERTRADEV.COUNTERTRADEA.ThreeSpecificForms:1.Barterdirectexchangeinkind2.Counterpurchasesale/purchaseofunrelatedgoodsbutwithcurrencies3.Buybackrepaymentoforiginalpurchasethroughsaleofarelatedproduct.31COUNTERTRADEB.WhentoUseCountertrade1.With“soft-currency”developingcountries2.Whenforeigncontractormustperform.