It is MCQs and ignore the foreign language

Documents Against Acceptance (D/A).11 (2 ) This is type of transaction that for the importer is more costly than a Letter of Credit and may provide formal/legal means to collect unpaid obligation however the importer takes on the risk of non-acceptance of documents and also commercial and country risks are not hedged. Although if bill of exchange/draft is accepted by the exporter, there is no guarantee of payment by the banks involved. Legal enforcement of O unpaid obligation are costly and time-consuming. On the other hand the exporter will receive goods before having to make payment but dishonouring an accepted draft is a legal liability and may ruin business .reputation This is type of transaction that for the exporter is less costly than a Letter of Credit and may provide formal/legal means to collect unpaid obligation however the exporter takes on the risk of non-acceptance of documents and also commercial and country risks are not hedged. Although if bill of exchange/draft is accepted by the Importer, there is no guarantee of payment by the banks involved. Legal enforcement of O unpaid obligation are costly and time-consuming. On the other hand the importer will receive goods before having to make payment but dishonouring an accepted draft is a legal liability and may ruin business reputation This is type of transaction that for the exporter is less costly than a Clean Payment and may provide formal/legal means to collect unpaid obligation however the exporter takes on the risk of non-acceptance of documents and also commercial and country risks are not hedged. Although if bill of exchange/draft is accepted by the Importer, there is guarantee of payment by the banks involved. Legal enforcement of unpaid obligation are not costly and time-consuming. On the other hand the importer will receive goods after having to make payment but dishonouring an accepted draft is not a legal liability and does not injure business .reputation Letter of credits. 12 (2 ) For exporter an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of credit. Thus it shifts credit risk from the Importer to the Issuing bank and it is obligated to ship against a Letter of Credit even if it is not issued as agreed. Exporter must bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Exporter exposed to risk of non- O payment. Importer is not assured that, for the Exporter to be paid, all terms and conditions of the Letter of Credit must be met. Importer is able to negotiate more favourable trade terms with the Exporter when payment by Letter of Credit is offered. A Letter of Credit assures correct documents and correct goods for importer and ties up line of credit For exporter an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of Credit. Thus it shifts credit risk from the exporter to the importer and it is obligated to ship against a Letter of Credit that is issued as agreed. Exporter nust bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Exporter exposed to risk of non-payment. Importer is assured that, for the Exporter to be paid, all terms and conditions of the Letter of Credit must be met. Importer is able to negotiate more favourable trade terms with the Exporter when payment by Letter of Credit is offered. A .Letter of Credit assures correct delivery of goods for importer and does not tie up line of credit For exporter an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of Credit. Thus it shifts credit risk from the Importer to the Issuing bank and it is not obligated to ship against a Letter of credit that is not issued as agreed. Exporter must bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Exporter exposed to risk of non- O payment. Importer is assured that, for the Exporter to be paid, all terms and conditions of the Letter of Credit must be met. Importer is able to negotiate more favourable trade terms with the Exporter when payment by Letter of Credit is offered. A Letter of Credit assures correct documents but not necessarily correct goods for importer and ties up line of credit For importer an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of credit. Thus it shifts credit risk from the For importer an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of Credit. Thus it shifts credit risk from the exporter to the Issuing bank and it is not obligated to ship against a Letter of credit that is not issued as agreed. Importer must bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Importer exposed to risk of non- o payment. Exporter is assured that, for the Importer to be paid, all terms and conditions of the Letter of Credit must be met. Exporter is able to negotiate more favourable trade terms with the Importer when payment by Letter of Credit is offered. A Letter of Credit assures correct documents but not necessarily correct goods for .exporter and ties up line of credit Documents Against Acceptance (D/A).11 (2 ) This is type of transaction that for the importer is more costly than a Letter of Credit and may provide formal/legal means to collect unpaid obligation however the importer takes on the risk of non-acceptance of documents and also commercial and country risks are not hedged. Although if bill of exchange/draft is accepted by the exporter, there is no guarantee of payment by the banks involved. Legal enforcement of O unpaid obligation are costly and time-consuming. On the other hand the exporter will receive goods before having to make payment but dishonouring an accepted draft is a legal liability and may ruin business .reputation This is type of transaction that for the exporter is less costly than a Letter of Credit and may provide formal/legal means to collect unpaid obligation however the exporter takes on the risk of non-acceptance of documents and also commercial and country risks are not hedged. Although if bill of exchange/draft is accepted by the Importer, there is no guarantee of payment by the banks involved. Legal enforcement of O unpaid obligation are costly and time-consuming. On the other hand the importer will receive goods before having to make payment but dishonouring an accepted draft is a legal liability and may ruin business reputation This is type of transaction that for the exporter is less costly than a Clean Payment and may provide formal/legal means to collect unpaid obligation however the exporter takes on the risk of non-acceptance of documents and also commercial and country risks are not hedged. Although if bill of exchange/draft is accepted by the Importer, there is guarantee of payment by the banks involved. Legal enforcement of unpaid obligation are not costly and time-consuming. On the other hand the importer will receive goods after having to make payment but dishonouring an accepted draft is not a legal liability and does not injure business .reputation Letter of credits. 12 (2 ) For exporter an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of credit. Thus it shifts credit risk from the Importer to the Issuing bank and it is obligated to ship against a Letter of Credit even if it is not issued as agreed. Exporter must bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Exporter exposed to risk of non- O payment. Importer is not assured that, for the Exporter to be paid, all terms and conditions of the Letter of Credit must be met. Importer is able to negotiate more favourable trade terms with the Exporter when payment by Letter of Credit is offered. A Letter of Credit assures correct documents and correct goods for importer and ties up line of credit For exporter an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of Credit. Thus it shifts credit risk from the exporter to the importer and it is obligated to ship against a Letter of Credit that is issued as agreed. Exporter nust bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Exporter exposed to risk of non-payment. Importer is assured that, for the Exporter to be paid, all terms and conditions of the Letter of Credit must be met. Importer is able to negotiate more favourable trade terms with the Exporter when payment by Letter of Credit is offered. A .Letter of Credit assures correct delivery of goods for importer and does not tie up line of credit For exporter an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of Credit. Thus it shifts credit risk from the Importer to the Issuing bank and it is not obligated to ship against a Letter of credit that is not issued as agreed. Exporter must bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Exporter exposed to risk of non- O payment. Importer is assured that, for the Exporter to be paid, all terms and conditions of the Letter of Credit must be met. Importer is able to negotiate more favourable trade terms with the Exporter when payment by Letter of Credit is offered. A Letter of Credit assures correct documents but not necessarily correct goods for importer and ties up line of credit For importer an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of credit. Thus it shifts credit risk from the For importer an undertaking from the Issuing Bank that he will receive payment under the Letter of Credit provided that you meet all terms and conditions of the Letter of Credit. Thus it shifts credit risk from the exporter to the Issuing bank and it is not obligated to ship against a Letter of credit that is not issued as agreed. Importer must bear in mind that the documents must be prepared in strict compliance with the requirements stipulated in the Letter of Credit. Non-compliance leaves Importer exposed to risk of non- o payment. Exporter is assured that, for the Importer to be paid, all terms and conditions of the Letter of Credit must be met. Exporter is able to negotiate more favourable trade terms with the Importer when payment by Letter of Credit is offered. A Letter of Credit assures correct documents but not necessarily correct goods for .exporter and ties up line of credit