Chapter 01 Overview of International Trade 131. Introduction / 14 2. Purposes of international trade / 163. Risks in international trade / 194. Review questions and answers / 28Chapter 02 Trade Documents 351. Introduction / 36 2. Financial documents / 373. Commercial documents / 494. Review questions and answers / 63Chapter 03 Overview of Methods of Payment 671. Introduction / 68 2. Basic types of methods of payment / 703. Brief overview of each method of payment / 744. Case study for respective method of payment / 765. Review questions and answers / 80Chapter 04 Payment in Advance (Cash in Advance) 851. Introduction / 862. Operation of a payment in advance / 883. Advantages/disadvantages / 914. Review questions and answers / 94Chapter 05 Open Account 971. Introduction / 98 2. Operation of an open account / 1003. Features and advantages/disadvantages / 1034. Review questions and answers / 105Chapter 06 Documentary Collection 1091. Introduction / 1102. Operation of a documentary collection / 1133. Features and advantages/disadvantages / 1244. The Uniform Rules for Collections (URC 522) / 1285. Case study / 1366. Review questions and answers / 144Chapter 07 Documentary Credits (L/C) 1531. Introduction / 154 2. Operation of a documentary credit / 1583. Advantages/Disadvantages / 169 4. Various forms of credit / 1715. Independence principle and fraud exception / 1756. Review questions and answers / 183Chapter 08 UCP 600 and L/C Case Study 1911. Introduction / 192 2. Major clauses of UCP 600 / 1943. Case study of a documentary credit / 2004. SWIFT and the Fields / 2115. Review questions and answers / 238Chapter 09 Other Methods of Payment 2411. Bank payment obligation (BPO) / 242 2. Consignment / 2503. Check payment / 253 4. Netting / 2555. Review questions and answers / 256Chapter 10 Demand Guarantee (independent guarantee) and Standby L/C 2611. Introduction / 2622. Structures and forms of guarantees / 2673. Independence Principle and Fraud Exception / 2774. Case study of demand guarantee/standby L/C / 2855. Review questions and answers / 296Chapter 11 Negotiating Payment Terms 2991. Terms of payment and cash management / 3002. Contents of the terms of payment / 3023. Final design of the terms of payment / 3054. Review questions and answers / 307Chapter 12 Trade Finance 3091. Introduction / 3102. Export working capital financing and insurance / 3143. Negotiation of bills of exchange (discounting invoices) / 3174. Export factoring and international forfaiting / 3205. Review questions and answers / 329Chapter 13 Export Credit Insurance/Guarantee 3331. Introduction / 3342. Overview of export credit insurance/guarantee / 3393. Operation of export credit insurance/guarantee / 3414. Review questions and answers / 350Appendix 1. Uniform Customs and Practice for Documentary Credits (UCP 600) 354Appendix 2. Uniform Rules for Collections (URC 522) 382■ INDEX 399