Why are incoterms important in international trade

Assignment Help Other Management

Reference no: EM132126

QUESTION

You are trade analyst working in a commercial bank. You have been approached by one of your colleagues from other departments to provide some clarifications in relation to risks in international trade financing. You are requested to answer the following interrogations-

(a) Explain the following terms used in international trade-

Open account
Shipping guarantee
Avalised Bill of exchange
‘Dirty' bill of lading

(b) Why are incoterms important in international trade?

(d) Explain the risk management process and the importance of reporting and communication in this process

Reference no: EM132126

Questions Cloud

Describe six risk concepts which will apply to the risk : General employees need to be taught to recognize and assess risks in ways that are relatively easy to understand. Describe six risk concepts (that is questions that a risk manager will ask when assessing risk) which will apply to the risk of most t..

Explain popular risk analysis technique is var : An increasingly popular risk analysis technique is VAR. Explain, illustrate and assess this technique. Discuss what strategies can be used as risk planning tools? Explain the following techniques and state in what part of risk management process they..

How utility functions could affect decision making process : One of the executives of Ford has been saying that: "Risk management is a costly technique that has limited benefits." Discuss. Demonstrate how utility functions could affect decision making process regarding risk of Ford

Explaining how securitization operates : Banks find it more profitable to lend money as the margin on lending is much higher than any other banking activity. However, banks have to assess credits risks and take necessary measures to reduce and mitigate their risks. After explaining ho..

Why are incoterms important in international trade : Why are incoterms important in international trade?, Discuss the risks that an exporter faces when dealing on open account, Explain the risk management process and the importance of reporting and communication in this process.

Explain the distinction between prediction and forecasting : Explain the distinction between Prediction and Forecasting?, Why Forecasting is significant in decision making?, Define Delphi technique of Forecasting. What are the various decisions operation managers are called upon to make in the manufacturing ..

Deliberate the strategic importance of forecasting : Explain the meaning of forecasting. Support your answer by means of appropriate examples in the business context, Deliberate the strategic importance of forecasting

Explain what is meant by capacity management : A customer waiting in line is potentially a lost customer. Choose a service organisation of your choice, suggest and explain the strategies that operations managers could use to make waiting less painful, Explain what is meant by capacity manageme..

Describe the needs that operational managers : From the perspective of the transformation process, explain the major differences that exist between the service industries and manufacturing industries, Describe the needs that operational managers are attempting to satisfy by the introduction of ..

User Account

All Pages