As a trader who exports large volumes of Vegetable Edible Oils to China, you require Buyers to have their banks issue Usance Letter of Credit (L/C) which are 90 day from the Bill of Lading. Often the L/C issuance banks are Chinese banks which you have not heard of and from branches in small cities and towns. You are asked to craft a procedure to manage risks that may arise from being beneficiary of these Letters of Credit. Sequence using the following statements: A. If Buyers do not have acceptable banks to issue L/Cs, payment of cash in advance of delivery would be required B. Drop the L/C issuance banks which your banks do not have credit lines with C. Check with your banks if they would confirm L/Cs from the list of L/C issuance banks D. Get a list of L/C issuance banks and branch details The dynamics of Trade and Trade Finance is constantly being disrupted by a myriad of factors. In the transportation of goods, ocean faring vessels are now larger and specializes in conveying specific products such as oil, steel, perishable goods. Electronic and Mobile Commerce (E-Commerce, M-Commerce) has led to the proliferation of courier services with PMD (Personal Mobility Devices) riders meeting the last mile fulfilment. Payments are often made electronically dispensing with cheques and trips to the bank. Geopolitical difference is now an overcast in world trade with major trading partners imposing trade tariffs and tensions over currency rates. Major powers in trying to force other countries to its point of view have increasingly resorted to the use of trade sanctions. Many domestic and international actors are concerned about the pace of climate change. They are lobbying governments to come up with policies to ensure sustainability in businesses. Product traceability to source can now be monitored through Blockchain as part of Supply Chain Financing. Which one of the following forces drive Trade and Trade Finance dynamics? All of the listed options Innovations in transportation, internet and blockchain technologies Indiscriminate deforestation and unsustainable production methods Shifts in Geopolitical and Economic positioning Capitalistic objective of profit maximization In the crude oil market an opportunity has arisen where you have a Middle Eastern cargo and a matching specification from a Chinese oil refinery. While you have dealt with the Middle Eastern oil producer, the Chinese oil refinery is new to you and is a fairly unknown name. Which method of payment will you choose and why? Documentary Collection since you hope to cultivate good relation with the Chinese Oil Refinery Letter of Credit since the Chinese Oil Refinery is a new trade counterparty Chinese Oil Refinery to make advanced payment since the Chinese Oil Refinery is not well known Open Account since the Chinese Oil Refinery has asked for it and you want to look agreeable to them Question 18 5pts Singapore Rice Importer (SRI) refused the request of Thai Fragrant Rice (TFR) to pay cash-in-advance, yet TFR's inventory is now higher than usual and would like to make the sale. The problem lies in TFR not knowing SRI. Choose the most likely follow-on action TFR is likely to take and the reason for it. TFR should allow Open Account terms as SRI would find such terms attractive TFR should aim at Documentary Collection since it is cheaper than Letter of Credit TFR should ask for Letter of Credit as Singapore is a well know financial center with branches of many international banks TFR should seek more information about SRI and obtain references from its banking and insurance network before deciding the next course of action As a trader who exports large volumes of Vegetable Edible Oils to China, you require Buyers to have their banks issue Usance Letter of Credit (L/C) which are 90 day from the Bill of Lading. Often the L/C issuance banks are Chinese banks which you have not heard of and from branches in small cities and towns. You are asked to craft a procedure to manage risks that may arise from being beneficiary of these Letters of Credit. Sequence using the following statements: A. If Buyers do not have acceptable banks to issue L/Cs, payment of cash in advance of delivery would be required B. Drop the L/C issuance banks which your banks do not have credit lines with C. Check with your banks if they would confirm L/Cs from the list of L/C issuance banks D. Get a list of L/C issuance banks and branch details The dynamics of Trade and Trade Finance is constantly being disrupted by a myriad of factors. In the transportation of goods, ocean faring vessels are now larger and specializes in conveying specific products such as oil, steel, perishable goods. Electronic and Mobile Commerce (E-Commerce, M-Commerce) has led to the proliferation of courier services with PMD (Personal Mobility Devices) riders meeting the last mile fulfilment. Payments are often made electronically dispensing with cheques and trips to the bank. Geopolitical difference is now an overcast in world trade with major trading partners imposing trade tariffs and tensions over currency rates. Major powers in trying to force other countries to its point of view have increasingly resorted to the use of trade sanctions. Many domestic and international actors are concerned about the pace of climate change. They are lobbying governments to come up with policies to ensure sustainability in businesses. Product traceability to source can now be monitored through Blockchain as part of Supply Chain Financing. Which one of the following forces drive Trade and Trade Finance dynamics? All of the listed options Innovations in transportation, internet and blockchain technologies Indiscriminate deforestation and unsustainable production methods Shifts in Geopolitical and Economic positioning Capitalistic objective of profit maximization In the crude oil market an opportunity has arisen where you have a Middle Eastern cargo and a matching specification from a Chinese oil refinery. While you have dealt with the Middle Eastern oil producer, the Chinese oil refinery is new to you and is a fairly unknown name. Which method of payment will you choose and why? Documentary Collection since you hope to cultivate good relation with the Chinese Oil Refinery Letter of Credit since the Chinese Oil Refinery is a new trade counterparty Chinese Oil Refinery to make advanced payment since the Chinese Oil Refinery is not well known Open Account since the Chinese Oil Refinery has asked for it and you want to look agreeable to them Question 18 5pts Singapore Rice Importer (SRI) refused the request of Thai Fragrant Rice (TFR) to pay cash-in-advance, yet TFR's inventory is now higher than usual and would like to make the sale. The problem lies in TFR not knowing SRI. Choose the most likely follow-on action TFR is likely to take and the reason for it. TFR should allow Open Account terms as SRI would find such terms attractive TFR should aim at Documentary Collection since it is cheaper than Letter of Credit TFR should ask for Letter of Credit as Singapore is a well know financial center with branches of many international banks TFR should seek more information about SRI and obtain references from its banking and insurance network before deciding the next course of action