Chapter 01 Overview of International Trade 13 1. Introduction / 14 2. Purposes of international trade / 16 3. Risks in international trade / 19 4. Review questions and answers / 28 Chapter 02 Trade Documents 35 1. Introduction / 36 2. Financial documents / 37 3. Commercial documents / 49 4. Review questions and answers / 63 Chapter 03 Overview of Methods of Payment 67 1. Introduction / 68 2. Basic types of methods of payment / 70 3. Brief overview of each method of payment / 74 4. Case study for respective method of payment / 76 5. Review questions and answers / 80 Chapter 04 Payment in Advance (Cash in Advance) 85 1. Introduction / 86 2. Operation of a payment in advance / 88 3. Advantages/disadvantages / 91 4. Review questions and answers / 94 Chapter 05 Open Account 97 1. Introduction / 98 2. Operation of an open account / 100 3. Features and advantages/disadvantages / 103 4. Review questions and answers / 105 Chapter 06 Documentary Collection 109 1. Introduction / 110 2. Operation of a documentary collection / 113 3. Features and advantages/disadvantages / 124 4. The Uniform Rules for Collections (URC 522) / 128 5. Case study / 136 6. Review questions and answers / 144 Chapter 07 Documentary Credits (L/C) 153 1. Introduction / 154 2. Operation of a documentary credit / 158 3. Advantages/Disadvantages / 169 4. Various forms of credit / 171 5. Independence principle and fraud exception / 175 6. Review questions and answers / 183 Chapter 08 UCP 600 and L/C Case Study 191 1. Introduction / 192 2. Major clauses of UCP 600 / 194 3. Case study of a documentary credit / 200 4. SWIFT and the Fields / 211 5. Review questions and answers / 238 Chapter 09 Other Methods of Payment 241 1. Bank payment obligation (BPO) / 242 2. Consignment / 250 3. Check payment / 253 4. Netting / 255 5. Review questions and answers / 256 Chapter 10 Demand Guarantee (independent guarantee) and Standby L/C 261 1. Introduction / 262 2. Structures and forms of guarantees / 267 3. Independence Principle and Fraud Exception / 277 4. Case study of demand guarantee/standby L/C / 285 5. Review questions and answers / 296 Chapter 11 Negotiating Payment Terms 299 1. Terms of payment and cash management / 300 2. Contents of the terms of payment / 302 3. Final design of the terms of payment / 305 4. Review questions and answers / 307 Chapter 12 Trade Finance 309 1. Introduction / 310 2. Export working capital financing and insurance / 314 3. Negotiation of bills of exchange (discounting invoices) / 317 4. Export factoring and international forfaiting / 320 5. Review questions and answers / 329 Chapter 13 Export Credit Insurance/Guarantee 333 1. Introduction / 334 2. Overview of export credit insurance/guarantee / 339 3. Operation of export credit insurance/guarantee / 341 4. Review questions and answers / 350 Appendix 1. Uniform Customs and Practice for Documentary Credits (UCP 600) 354 Appendix 2. Uniform Rules for Collections (URC 522) 382 ■INDEX 399