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problem 1:

One of your customers has approached your bank to clarify certain technical issues used in relation to trade finance. You are requested to answer to the following interrogations from a bank Corporate Relationship Manager’s standpoint.

(a) With the help of diagrams, show the difference between documentary collection and documentary credit used in international trade?

(b) describe the following terms used in relation to a Bill of Lading.

a. Charter party bill of lading;

b. Container bills of lading;

c. Combined transport bill of lading;

d. Dirty bill of lading.

(c) describe the responsibilities of an exporter having used EXW (ex-works) and FOB (Free On Board) used as Incoterms in international trade.

(d) Do you think that a bill of exchange issued by an importer in favour of an exporter  under‘Usance Documentary Credit’ needs to be avalised by the importer’s bank?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M95258

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