Thursday, May 07, 2009

Global Econ

Final 75-85Question. 7:15, Tuesday 19th
10% begining, 20% previous exam, 70% new materials

Chapter 15
EXPORTING

Major Concern: tax, currency, control, risk,
Proper procedure to manage risk of exporting

PO-Purchase Order
letter of credit <-- request letter of credit, can take money from their bank if they do not pay
draft: Instruction document that dictate payment terms, zero risk with US dollars.
"" : who's going to pay, how, when? wire transfer
Bill of lading: receipt, contract, document of title

manage risk associate with currency by using Dollars
letter of credit, make sure getting paid
P.0 dictate all the terms.

P.O. -> Ship -> Invoice

Cash flow

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