国际财务管理 课后答案

1/Banker`s Acceptances

A. Describe how foreign trade would be affected if banks did not provide trade services.

Foreign trade would be reduced without the trade-related services by banks, because some trade can only occur if banks back the transaction with bankers acceptances.

B. How can a banker`s acceptance be beneficial to an exporter, an importer, and a bank?

The exporter does not need to worry about the credit risk of the importer and can therefore penetrate new foreign markets without concern about the credit risk of potential customer.

The importer benefit from a banker`s acceptance by obtaining greater access to foreign markets when purchasing supplies and other products. Without banker`s acceptances, exporters may be unwilling to accept credit risk of importers.

The bank accepting the draft benefits in that it can earns a commission for creating an acceptance.

A banker’s acceptance guarantees payment to the exporter so that credit risk of the importer is not worrisome. It allows the importers to import goods without being turned down due to uncertainty about their credit standing. It is a revenue generator for the bank since a fee is received by the bank for this service.

2/Export Financing.

a. Why would an exporter provide financing for an importer?

b. Is there much risk in this activity? Explain.

ANSWER: An exporter could increase sales by allowing the importer to pay at a future date. Importers may not be able to afford to pay. There may be high credit risk incurred by the exporter here, especially if the importer is an unknown small company.

3/ Role of Factors. What is the role of a factor in international trade transactions?

ANSWER: A factor can relieve the exporter of the worry about the credit risk of the importer. In return, the factor is rewarded by being able to purchase the accounts receivables at a lower price than their cash value.

5/What are bills of lading, and how do they facilitate international trade transactions?

A bill of lading is a document issued by a carrier which details a shipment of merchandise and gives title of that shipment to a specified party.

Bills of lading are one of three important documents used in international trade to help guarantee that exporters receive payment and importers receive merchandise.

6/Forfaiting. What is forfaiting? Specify the type of traded goods for which forfaiting is applied. Forfaiting is a type of trade finance. Forfaiting is refers to the purchase of financial obligations, such as bills of exchange or promissory notes, without recourse to the original holder, usually the exporter. In a forfaiting transaction, the importer issues a promissory note to pay the exporter for the importer for the importer goods over a period that generally ranges from 3 to 7years. The exporter then sells the notes, without recourse, to the forfaiting bank.

Like mechanical, electronic or complete sets of equipment and other capital goods trading, the amount of the transaction is large. The longer importer’s deferred payment period is, the more suitable for Forfaiting is.

9/ Countertrade. What is countertrade?

The term countertrade denotes all types of foreign trade transaction in which the sale of goods to

one country is linked to t/he purchase or exchange of goods from that same country. Countertrade can be classified into three broad categories-barter, compensation and counterpurchase. Barter is the exchange of goods between two parties without the use of any currency as a medium of exchange. In a compensation, the delivery of goods to one party is compensated for by the seller's buying back a certain amount of the product from the same party. The counterpurchase means that the exchange of goods between two parties under two distinct contracts expressed in monetary terms.