1. English for International Trade Law Session 5 International Payment Mechanisms

2. CH5 – Payment mechanisms WELL DONE, nearly all answers correct Some troubles: Typographical errors – PLEASE use an English SPELLING CHECKER Question 2. In which situations does the exporter choose “open account”? what happens X when he decides for it

3. Aims To succeed in the global marketplace and ______ sales _____foreign competitors, exporters must offer attractive sales terms supported by appropriate payment methods. – to win sales against competitors

4. The most important condition To be paid ______ and ______ is the ultimate goal for each export sale. –in full and on time

5. Balance needs to be stricken A method of payment needs to be chosen to ______ the payment risk while also ______ the needs of the buyer. - minimize - accommodating

6. Donation and Gift For exporters any sale is a ______ until payment is received. gift For importers any payment is a ______ until the goods are received. donation

7. Payment risk ladder http://www.iptu.co.uk/content/pdfs/paymentmethods.pdf

8. A letter of credit A letter of credit is a bank's written promise that it will make a customer's (the holder) payment to a vendor (called the beneficiary) if the customer does not. Although letters of credit can be useful, it’s often best to avoid using one for a transaction. They can sometimes result in expensive delays, bureaucracy and unexpected costs. https://www.gov.uk/letters-of-credit-for-importers-and-exporters

9. Why? Letter of credit Notice how they provide explanations. Steps – what are they?

10. Letter of credit - steps Step 10 Step 4 Step 13 Step 11 Step 2 Step 9 Step 3 Step 6 Step 8 Step 7 Step 1 Step 12 Step 5 Step 14

11. 1. Undertaking - závazek 2. Cosignment – zásilka, cargo 3. Intermediary - zprostředkovatel 4. Maturity

12. 1. to draw a bill of exchange – vystaví směnku 2. forwards – pošle 3. dispatches – odešle 4. present 5. accepts, release the documents – převede 6. dishonours the bill – odmítne zaplatit 7. remit payment – poukázat platbu

13. Formal letters in English typical features???

14. Formal letters in English Which DOESN’T belong to formal letters? I’m writing to… Dear Mr Smith I would appreciate if… pretty sure Yours faithfully, I look forward to your answer With love

15. Formal letters in English Which DOESN’T belong to formal letters? I’m writing to… Dear Mr Smith I would appreciate if… pretty sure Yours faithfully, I look forward to your answer With love

16. Formal letters in English Salutation you know the name:

17. Formal letters in English Salutation you know the name: Dear Mr. Smith …

18. Formal letters in English Salutation you know the name: Dear Mr. Smith … Yours sincerely

19. Formal letters in English Salutation you don’t know the name:

20. Formal letters in English Salutation you don’t know the name: Dear Sirs OR Dear Sir or Madam …

21. Formal letters in English Salutation you don’t know the name: Dear Madam or Sir, … Yours Faithfully

22. Formal letters in English NO everyday, colloquial language; slang or jargon NO contractions (I’m; it’s, we´ve, etc) NO emotive, subjective language (terrible, rubbish etc) use ‘modal verbs’ such as would, could and should. „Please send me“ → more formally „I would be grateful if you could send me“ Don’t overdo it though, and don´t make your language too formal or maybe old fashioned.

23. Tips for formal letter as short as possible but to the point clearly written clearly set out well structured – paragraphs appropriate in tone and style

24. Writing task: Letter of advice Dear Mr Smith Payment mechanism I would like to start importing a special brand, high quality coffee from Brazil. We have entered into negotiations with an exporter. I have no experience in international trade, the exporters insist on advanced payment. Could you please advice me on what methods of payment should be acceptable for us? I look forward to hearing from you. Yours sincerely Jan Novák

25. E-mail of advice I am writing to ask/ tell//inform you that... I am writing to ask/inquire... I am writing with regard to... I am writing with reference to... I am writing in connection with... I am writing in response to... In reply to your letter, I am writing to... (if the question indicates that you have had a letter)