User:Jukeboksi/BBA studies/Entering Target Markets: Difference between revisions
User:Jukeboksi/BBA studies/Entering Target Markets (edit)
Revision as of 12:42, 22 May 2014
, 22 May 2014→Lesson 2 - Good sales quotations and Incoterms: additional info on w:documentary collection vs. w:letter of credit payment ( documentary credit )
(→Lesson 1 - Basics of import/export: add note on documentary credit "One of the primary peculiarities of the documentary credit is that the payment obligation is independent from the underlying contract of sale or any other contract in the transaction) |
(→Lesson 2 - Good sales quotations and Incoterms: additional info on w:documentary collection vs. w:letter of credit payment ( documentary credit )) |
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* A '''[[w:documentary collection|documentary collection]]''' is a process, in which the [[w:seller|seller]] instructs his [[w:bank|bank]] to forward [[w:document|document]]s related to the [[w:export|export]] of goods to the [[w:buyer|buyer]]'s bank with a request to present these documents to the buyer for [[w:payment|payment]], indicating when and on what conditions these documents can be released to the buyer. ( Wikipedia ) | * A '''[[w:documentary collection|documentary collection]]''' is a process, in which the [[w:seller|seller]] instructs his [[w:bank|bank]] to forward [[w:document|document]]s related to the [[w:export|export]] of goods to the [[w:buyer|buyer]]'s bank with a request to present these documents to the buyer for [[w:payment|payment]], indicating when and on what conditions these documents can be released to the buyer. ( Wikipedia ) | ||
:::Documentary Collections facilitate [[w:import|import]]/export operations. ''They do not provide the same level of security as '''[[w:Letters of credit|Letters of Credit]]''', but, as a result, the costs are lower.'' ( Wikipedia ) | |||
:::Unlike the Letters of Credit, for a Documentary Collection the bank acts as a channel for the documents but does not issue any [[w:payment covenant|payment covenant]]s (does not guarantee payment). The bank that has received a documentary collection may [[w:debit|debit]] the buyer's account and make payment only if authorised by the buyer. ( Wikipedia ) | |||
* '''Documentary credit''' redirects to '''[[w:L/C|L/C]]''' as L/C as it is done with L/C( jubo-jubo ) | |||
== Lesson 3 NO CLASS == | == Lesson 3 NO CLASS == | ||