跨国公司财务管理培训课程课件

MultinationalFinancialManagementAlanShapiro7th

EditionJ.Wiley&SonsPowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton1CHAPTER18FINANCINGFOREIGNTRADE2CHAPTEROVERVIEW:I.PAYMENTTERMSII.

DOCUMENTSIII.

FINANCINGTECHNIQUESIV.

GOVERNMENTSOURCESOFEXPORTFINANCINGANDCREDITINSURANCEV.

COUNTERTRADE3I.

PAYMENTTERMSI.

PAYMENTTERMSA.

FivePrincipalMeans:1.

Cashinadvance2.

LetterofCredit3.

Drafts4.

Consignment5.

OpenAccount4PAYMENTTERMSB.

CashinAdvance1.

Minimalrisktoexporter2.

Usedwherethereisa.

Politicalunrestb.

Goodsmadetoorderc.

Newunfamiliarcustomer5PAYMENTTERMSC.

LetterofCredit(L/C)1.

Aletteraddressedtosellera.

writtenandsignedbybuyer’sbankb.

promisingtohonorseller’sdrafts.c.

Banksubstitutesitsowncommitmentd.

Sellermustconformtoterms6PAYMENTTERMS2.

AdvantagesofanL/CtoExportera.

eliminatescreditriskb.

reducesdefaultriskc.

paymentcertaintyd.

prepaymentriskprotectione.

financingsource7PAYMENTTERMS3.

AdvantagesofL/CtoImportera.

shipmentassuredb.

documentsinspectedc.

mayallowbettersalestermsd.

relativelylow-costfinancinge.

easycashrecoveryifdiscrepancies8PAYMENTTERMS4.

TypesofL/Csa.

documentaryb.

non-documentaryc.

revocabled.

irrevocablee.

confirmedf.

transferable9PAYMENTTERMSD.

DRAFTS1.

Definition:-unconditionalorderinwriting-exporter’sorderforimportertopay-atonce(sightdraft)or-infuture(timedraft)10PAYMENTTERMS2.

ThreeFunctionsofDraftsa.

clearevidenceoffinancialobliga-tionb.

reducedfinancingcostsc.

providesnegotiableanduncondi-tionalfinancialinstrument(ie.

Maybeconvertedtoabanker’sacceptance)11PAYMENTTERMS3.

TypesofDraftsa.

sightb.

timec.

clean(nodocumentsneeded)d.

documentary12PAYMENTTERMSE.

CONSIGNMENT1.

Exporter=theconsignor2.

Importer=theconsignee3.

Consigneeattemptstosellgoodstoathirdparty;keepssomeprofit,remitsresttoconsignor.4.

Use:

Betweenaffiliates13PAYMENTTERMSF.

OPENACCOUNT1.

Createsacreditsale2.

Toimporter’sadvantage3.

Morepopularlatelybecausea.

majorsurgeinglobaltradeb.

creditinformationimprovedc.

moreglobalfamiliaritywithexporting.14PAYMENTTERMS4.

BenefitsofOpenAccounts:a.

greaterflexibilityinmakingatradeb.

lowertransactionscosts5.

Majordisadvantage:highlyvulnerabletogovernmentcurrencycontrols.15II.

DOCUMENTSII.

DOCUMENTSUSEDININT’LTRADEA.

Fourmostuseddocuments1.BillofLading(mostimportant)2.CommercialInvoice3.InsuranceCertificate16DOCUMENTSB.

BillofLadingThreefunctions:1.

Actsasacontracttocarrythegoods.2.

Actsasashipper’sreceipt3.

Establishesownershipovergoodsifnegotiabletype.17DOCUMENTS2.

TypeofBillsa.

Straightb.

Orderc.

On-boardd.

Received-for-shipmente.

Cleanf.

Foul18DOCUMENTSC.COMMERCIAL

INVOICEPurpose:1.

Listsfulldetailsofgoodsshipped2.

Namesofimporter/exportergiven3.

Identifiespaymentterms4.

Listchargesfortransportandinsurance.19DOCUMENTSD.

INSURANCE1.

TwoCategories:a.

Marine:transportbyseab.

Air:

transportbyair2.

InsuranceCertificateissuedtoshowproofofinsurance3.

Allshipmentsinsuredtoday.20DOCUMENTSE.

CONSULARINVOICELocalconsulateinhostcountryissues:•

avisafortheexporter’sinvoice•

requiresfeetobepaidtoconsulate21III.

FINANCINGTECHNIQUESIII.

FINANCINGTECHNIQUESA.

FourTypes:1.

Bankers’Acceptancesa.Creation:draftsacceptedb.Terms:

Payableatmaturitytoholder22FINANCINGTECHNIQUES2.

Discountinga.

Convertsexporters’draftstocashminusinteresttomaturityand

commissions.b.

Lowcostfinancingwithfewfeesc.

Maybewith(exporterstillliable)orwithoutrecourse(banktakesliabilityfornonpayment).23FINANCINGTECHNIQUES3.

Factoring-firmssellaccountsreceivabletoanotherfirmknownasthefactor.a.

Discountchargedbyfactorb.

Non-recoursebasis:

Factorassumesallpaymentrisk.c.Whenused:1.)

Occasionalexporting2.)

Clientsgeographicallydispersed.24FINANCINGTECHNIQUES4.

Forfaitinga.

Definition:discountingatafixedratewithoutrecourseofmedium-termaccountsreceivabledenominatedinafullyconvertiblecurrency.b.

Use:Largecapitalpurchasesc.

MostpopularinW.Europe25IV.

GOVERNMENTSOURCESOFEXPORTFINANCINGIV.

GOVERNMENTSOURCESOFEXPORT

FINANCINGANDCREDITINSURANCEA.

Export-ImportBankoftheU.S.-knownasEx-ImBank-financesandfacilitatesU.S.exportsonly.26GOVERNMENTSOURCESOFEXPORTFINANCING1.

Ex-ImBankPrograms:a.

Directloanstoexportersb.

Intermediateloans

toexportersc.

Loanguaranteesd.

Preliminarycommitmentse.

Politicalandcommercialinsurance27GOVERNMENTSOURCESOFEXPORTFINANCINGB.

PrivateExportFundingCorporation(PEFCO)1.

Financeslargesalesfromprivatesources2.

MaypurchaseloansofU.S.importers3.

ExImBankprovidesloanguarantees.28GOVERNMENTSOURCESOFEXPORTFINANCINGC.

ForeignCreditInsuranceAssociation(FCIA)1.

Offerscommercialandpoliticalriskinsurance2.

Wheninsured,exporteroftenableto

obtainfinancingfaster.29V.

COUNTERTRADEV.COUNTERTRADEA.

ThreeSpecificForms:1.

Barterdirectexchangeinkin