University:
California State University, Northridge
Course:
ECON 405 | International Trade
Academic year:

2023
Views:

12

Pages:

2
Author:

Mahmoud M.

International trade International Debt Settlement Method: 1. Accounting Method: A transaction in which goods are shipped and delivered before payment, usually 30-90 days after payment. This option is the most profitable for the importer (buyer), but the riskiest option for the seller is. 2. Advance Payments: Any advance payment, such as, before receiving the goods or services. Sellers sometimes require payment upfront to avoid non-payment. 3. Barter and Reciprocal Trade: A type of trade, usually by developing countries, that imposes restrictions on the foreign exchange holder exporter. This is a type of business where Goods is sold in exchange for other goods and services, not just money. There are three types of competition: Barter is the oldest mutual trade arrangement, essentially involving the direct exchange of goods and services of equal value, but no cash. In a retail purchase, the foreign seller agrees to purchase goods or services from the domestic buyer only in excess of the specified quantity. An equalization agreement in which the seller facilitates the sale of goods manufactured in the buyer's country or allows the manufacturer to do so as part of exports in the buyer's country; business. 4. Vostro Account: An account held on behalf of a foreign bank, usually by a correspondent company located in the US states or the UK. A Vostro account is an account in which a domestic bank (in terms of holding funds) deals with or manages a foreigner's account. Also known as Loro account. The Latin word vostro means "you". Travel Guide There are many ways to transfer money between distant cities or between different people. One of the most important methods used by travelers is the letter of credit of travelers. These are provided by the bank. Mainly for the convenience of travelers, especially foreigners . They allow the correspondent's bank to pay the specified amount to the owner of suppose wants to travel to Europe. Purchases letters of credit. He came to Paris and hoped to make some money. Letter of credit gives the name of the bank in Paris. A, he went to the bank and drew the form for the amount he wanted. Compare the signature on the transfer with the signature on the letter of credit and pay if it matches. The payer collects the amount withdrawn from the letter of credit plus commission. Therefore, where possible, the letter will show how much of the credit limit is unused. It is very convenient for travelers because promotion can be secured almost anywhere and does not require any verification other than signature comparison.