Exercises练习
I.True or False
1.When you deal with an importer with poor credit standing or one from high-risk countries or regions,payment by cash in advance is suggested.( )
2.When you sell a product that is high in demand in a certain overseas market,payment by cash in advance can be considered.( )
3.Under a documentary collection,there will be no problem with collecting payment as long as we select the remitting bank and the collecting bank with prudence.( )
4.From an exporter’s point of view,D/P at sight is better than D/P after sight in terms of payment security.( )
5.In the case of a payment by D/A,the collecting bank accepts the bill of exchange and releases the documents to the importer.( )
6.Under a documentary collection,CIF is a more secure Incoterms rule to the exporter than FOB is.( )
7.Cash in advance ensures that the importer gets the goods as he/she has ordered.( )
8.Under a documentary collection,both the banks act in strict accordance with the letter of instruction.( )
9.Under a documentary collection,the documents should be made in accordance with the contract.( )
10.As opposed to D/P,D/A requires payment be made after sight,which is more favorable to the importer.( )
II.Multiple Choice Questions
1.Among D/P,D/A and T/T,which of the following group ranks an exporter’s risk from large to small?( ).
[A]T/T,D/P,D/A [B]D/A,D/P,T/T
[C]D/A,T/T,D/P [D]D/P,D/A,T/T
2.Which one of the following payment arrangements involves the greatest risk for the exporter?( )
[A]Payment by demand draft.
[B]Payment by D/P at sight.
[C]Payment by D/A.
[D]Payment by D/P after sight.
3.The banks involved in a documentary collection act in strict accordance with( ).
[A]the remitting bank’s order
[B]the collecting bank’s order
[C]the exporter’s letter of instruction
[D]the importer’s letter of instruction
4.Which of the following is NOT a method to effect a remittance( ).
[A]L/C [B]M/T
[C]T/T [D]D/D
5.Which of the following party normally undertakes to pay under a payment arrangement of D/A?( )
[A]The importer. [B]The payee.
[C]The remitting bank. [D]The collecting bank.
6.Which of the following is TRUE about a transaction of documentary collection?( )
[A]The collecting bank promises to make payment to the exporter.
[B]The collecting bank promises to acquire the payment for the exporter.
[C]The remitting bank promises to acquire the payment for the exporter.
[D]There is a risk of the exporter failing to acquire the payment.
7.Which of the following is NOT a condition for presenting documents under a documentary collection?( )
[A]D/A. [B]D/P at sight.
[C]D/P after sight. [D]D/D.
8.Which of the following payment arrangement may incur additional warehousing charges at the port of destination?( )
[A]D/P at sight [B]D/P after sight
[C]D/A [D]T/T
9.Which party shall be the owner of the merchandise once it is released against a trust receipt?( )
[A]The remitting bank. [B]The collecting bank.
[C]The exporter. [D]The importer.
10.Which one of the following is NOT an option for the exporter if the importer refuses to pay or take delivery?( )
[A]Having the goods shipped back.
[B]Finding another buyer for the goods.
[C]Resorting to litigation.
[D]Asking the remitting bank or the collecting bank to pay.
III.Case Study
1.A Tianjin based Chinese exporter of Shawo Fruit Radish made a quotation to a Korean merchant at payment terms by D/P at sight.The Korean merchant replied that he could accept payment by D/P 90 days after sight with a collecting bank designated by him.Why do you think the Korean merchant requested such a payment arrangement?
2.Tianshan Agricultural Technology Co.,Ltd.,a Xinjiang-based Chinese company,once reached a deal of exporting some hops to a Polish company Mellow Brewery Co.,Ltd.under payment terms of D/P 90 days after sight.After the bill of exchange and the attached documents were sent to the collecting bank through the remitting bank,Mellow Brewery accepted the bill.As World Cup was around the corner,price of hops was rising when the goods arrived at the port of destination and Mellow Brewery was anxious to pick up the goods for production.Therefore,it managed to borrow the documents from the collecting bank against a trust receipt and picked up the goods.When the bill was due,the Polish company went bankrupt due to poor management and was unable to pay.The collecting bank notified the remitting bank that the drawee of the bill refused to pay,and suggested Tianshan Agricultural Technology ask for payment straight from the Polish importer.How do you think the Chinese company should deal with this case?