Chapter 9 Methods of Payment（1） 第九章 支付方式（1）
Learning Objectives:
◆Payment methods of cash in advance and open account
◆Telegraphic transfer as a major means to effect the above two payment methods
◆Payment methods of documentary collection—workflow,pros and cons
In international business negotiations,payment terms often become an issue that may obsess both you and the importer.You may wonder,“What if I cannot get paid after I ship the goods?”On the other hand,the importer may wonder,“What if I get goods not exactly as I ordered?”These obsessions arise from a lack of trust between you and the importer,which,imaginably,is more acute in international transactions than in domestic ones.Consequently,security of the payment method adopted often becomes top concern from your perspective.However,if you require a more conservative payment method,you may lose the deal to a competitor who is willing to accept more aggressive payment terms.Therefore,a wise decision regarding payment is to strike a balance between security and market.
Luckily,some useful methods and instruments have been innovated in the history to approach this issue,some of which embodies great thinking in retrospect.In this and the following two chapters,we will be learning about the major methods and instruments of payment adopted in international trade.