0:06
international trade employs various
0:08
payment methods each designed to balance
0:10
risk and trust between parties the
0:12
selection of an appropriate payment term
0:14
is critical for securing international
0:16
transactions payment methods range from
0:18
secure options like advanced payments to
0:21
riskier options like open accounts
0:23
different payment methods are suited to
0:25
different business relationships and
0:26
transaction types advanced payment
0:28
offers maximum security for exporters as
0:31
the buyer pays before shipment
0:33
eliminating non-payment risk letters of
0:35
credit LC provide a bank guarantee
0:38
ensuring payment upon meeting specified
0:40
shipping and documentation conditions
0:42
letters of credit protect both buyer and
0:44
seller in high value transactions
0:47
documents against payment DP involves
0:50
the buyer paying before receiving
0:51
shipping documents offering a balance
0:54
between security and trust documents
0:56
against payment dp offers a compromise
0:59
between security and trust in
1:01
international trade d A fosters
1:04
long-term relationships but increases
1:06
risk for exporters open account is the
1:08
riskiest payment method with goods
1:10
shipped before payment open account
1:12
requires strong trust or export credit
1:14
insurance combining payment terms with
1:16
export credit insurance or trade finance
1:19
can provide added protection miniil
