ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are five primary methods of payment in international trade that range from most to least secure: cash in advance, letter of credit, documentary collection or draft, open account and consignment. Of course, the most secure method for the exporter is the least secure for the importer and vice versa.

Detailed explanation-2: -For international sales, wire transfers and credit cards are the most commonly used cash-in-advance options available to exporters. With the advancement of the Internet, escrow services are becoming another cash-in-advance option for small export transactions.

Detailed explanation-3: -This article will examine four types of payment methods: cash advances, letters of credit (LCs), documentary collections (DCs), and open account sales.

Detailed explanation-4: -So, in this blog, we’ll discuss the 3 different types of international trade – Export Trade, Import Trade and Entrepot Trade.

Detailed explanation-5: -Payment options FAQ The three most common types of payment in today’s market are credit cards, debit cards, and cash. Credit and debit card transactions involve fees paid by merchants to the card companies, but they tend to involve larger purchase amounts than cash transactions.