Payment Instruments Used in International Trade and Their Influence on Delays and Money Transfer Management.

 I. Introduction 5
II. Instruments and Methods of International Payment 5
II.1 Currencies 5
II.2 Payment and Credit Instruments 6
II.2.1 The Bill of Exchange (Draft) 6
II.2.2 Promissory Note 6
II.2.3 The Check 6
II.4 The Incasso 7
II.4.1 Definition 7
II.4.2 Characteristics 7
II.5 The Payment Order (PO) 8
II.5.1 Definition 8
II.5.2 Characteristics 8
II.6 The Documentary Credit 9
II.6.1 Definition 9
II.6.2 Characteristics 9
II.6.3 The Letter of Credit 10
II.6.3.a Definition 10
II.6.3.b Characteristics 10
II.6.4 The Commercial Letter of Credit 12
II.6.4.aDefinition 12
II.6.4.b Characteristics 12
II.7 Other Payment Instruments 13
III. Practical applications 13
III.1“At Sight” Letter of Credit 14
III.1.1 Characteristics 14
III.1.2 Case Study 15
III.2.3 Comments 15
III.2 Deferred Letter of Credit 16
III.2.1 Characteristics 16
III.2.2 Case Study 17
III.2.3 Comments 17
III.3 Letter of Credit with Payment on Acceptance 18
III.3.1 Characteristics 18
III.3.2 Case Study 19
III.3.3 Comments 20
III.4 Letter of Credit with Payment by Negotiation 20
III.4.1 Characteristics 20
III.4.2 Case Study 22
III.4.3 Comments 22
III.4.3.a Comment for situation 1 22
III.4.3.b Comment for situation 2 22
III.5 Revolving Letter of Credit 23
III.5.1 Characteristics 23
III.5.2 Case Study 23
III.5.3 Comments 24
III.6 The Transferable Letter of Credit 25
III.6.1 Characteristics 25
III.6.2 Case Study 27
III.6.3 Comments 28
III.7 Red Clause Letter of Credit 28
III.7.1 Charactersitics 28
III.7.2 Case study 30
III.7.3 Comments 30
III.8“Back-to-Back” Letter of Credit 30
III.8.1 Characteristics 30
III.8.2 Case study 34
III.8.3 Comments 35
III.9 The Escrow Letter of Credit 36
III.9.1 Definition 36
III.9.2 Case Study 36
III.9.3 Comments 36
III.10 The Stand-by Letter of Credit 37
III.10.1 Definition 37
III.10.2 Case study 39
III.10.3 Comments 39
IV. Conclusions 40
Bibliography 42
Appendix 43
Glossary 44
Abbreviation List 45
Documents 46
Case Study1 46
Case Study 2 48
Case Study 3 49
Case Study 4 52
Case Study 5 54
Case Study 6 55
Case Study 7 57
Case Study 8 59
Case Study 9 61
Case Study 10 63