International Trade Finance

What are the top key risks/ issues facing exporters in international trade?

• Payment risk

• Legal risk

• Political risk

• Importer port not in operation

What are the key risks/ issues facing importers in international trade?

• Payment risk

• Quality of goods

• Political risk

• Goods failed to deliver on time

What are the most common Incoterms used in international trade?

• EXW

• FAS

• FOB

• CFR

Which trade terms pose the highest risk for Exporter?

• Open account trade

• Unconfirmed letter of credit

• Cash in advance

Which trade terms pose the highest risk for Importer?

• Open account trade

• Unconfirmed letter of credit

• Cash in advance

Irrevocable L/Cs…

• Can only be cancelled or amended by the importer

• Cannot be cancelled or amended without the permission of the exporter

• Are guarantees to importers to support domestic economies

The bank issuing an L/C takes primary responsibility for

• Transportation risk

• Documentary risk

• Delivery of exported goods

• Payment on behalf of the applicant

Which organization is the Japanese ECA?

• Japan Board for International Corp

• Japan Bank for International Cooperation

• Japan Bank for International Corp