Methods+of+payment

Methods of payment

= = toc =Objectives:= By the end of this session, students would have: 1. listened to and looked at a video describing the different types of methods of payment. 2. determined the type of payment best suited to a specific export need 3. answered some questions on information found in the video segment. 4. read on the different types of methods of payment used in International trade 5. discussed the advantages and disadvantages of these methods 6. done a graphic organiser showing the process for one of the methods of payment

=Video: 5 Methods of payment= What do you know about the different methods of payment available? Write as much as you can on the topic. Now check your notes as you watch this video.
 * Before viewing the video:**

media type="youtube" key="5CXfNz_48iw" height="360" width="640"

While looking at the video, add any new information to what you have already written.
 * While viewing the video.**

**Question time**
=Letters of Credit= Now, we will look indepth at specific information relating to the different types of Methods of Payment.

1. Read the information on Letters of Credit. 2. Describe in detail the process carried out by the buyer/seller. 3. Put the information on a graphic organiser (where applicable) 4. Discuss the advantages and/or disadvantages of this type of payment (where applicable) 6. Decide and explain the context in which you would use Letters of Credit.

Email your answers to slrubena2003@yahoo.com

Question time
1. Who is the applicant? 2. Who is the beneficiary? 3. Whose bank is the advising bank? 4. Whose bank is the issuing or opening bank? 5. What documents are needed in Letters of Credit? 6. When are the documents submitted to the bank? 7. What is "sight payment"? What is "term payment"? 9. Give three benefits of using Letters of Credit. 8. Give two advantages and disadvantages for the buyer for the use of Letters of Credit. 9. What is "Irrevocable and Confirmed Irrevocable Credit"? 10. What are the advantages of using this type of credit? 11. What is "Transferable credit"? 12. What does it entail?

Email your answers to slrubena2003@yahoo.com