Dayankl Elektronik Ltd, Trkiye is exporting to Strong Ltd in Bulgaria some TV sets. The payment method agreed between them is O/A . The credit terms have been extended recently to 180 days because there is a difficulty in selling in the local market in Bulgaria due to recent economic crisis and the demand is very weak. Strong Ltd is a highly credible company and has good relationship with financial institutions in general . Dayankl Elektronik is producing and sending every month to Strong Ltd some TV sets althrough the demand is weaker , still there is a demand . Dayankl Elektronik produces himself most of the components , but flat screens only are imported from the supplier in South Korea namely ing Screens . The agreed payment method between his supplier and himself is also O/A . They keep on trading with this method for almost 10 years . The due date of payment is 90 days after ing Screen issues his invoice to Dayankl Elektronik. The bank of Dayankl Elektronik is Gvenbanka and the bank of Strong Ltd is Ing Bank and the bank of ing Screens is Bank of China. ( 35 points )

a) Pls. draw and explain the 2 seperate transactions in this trade in steps. ( with regard to payment payments agreed ) Pls indicate the name of the parties in full (Pls. also use the appropriate trade finance terminology with regard to the name of the parties) 15 points)

b) Pls. identify and explain the risk of both sellers in this trade . How could they secure themselves for the risk they take ? Pls identify 2 trade finance instruments which would help them to secure their trade. Only name them . (10 points)

c)How could Dayankl Elektronik obtain the funds to pay to his supplier, since ing Screens expects to be paid 90 days earlier than Dayankl collects funds from his buyer ? Which trade finance instrument would help ? Pls. explain by drawing. ( 10 points)