Case International Trade and Trade Finance - 885 Words

FITTskills: International Trade Finance Case Study #1: New Modes of Trade Finance Case Study #1: New Modes of Trade Finance Trade finance in the twenty-first century: plug and pay? Palate-Able Delights (PAD) is a niche retailer of high-end food products imported from various parts of the world. Iranian saffron and caviar, French champagnes, Italian truffles and olive oils, vintage balsamic vinegars, fine cheeses, reserve wines from the leading vintners, even limited-availability spring waters†¦if a culinary delight exists, Palate-Able Delights has a mission to discover it, then share it with appreciative clients who quite happily pay premium for the pleasure. PAD has been very successful as an importer, but has packaged such unique†¦show more content†¦For now, the company is fine with payment and settlement solutions that will handle small volumes and have maximums on transaction value. The company CFO has directed a project team in finance to review some non-traditional settlement options, contrast them with more established options and report findings and recommendations. You have been ap pointed to lead the assessment team, to determine whether such solutions are viable for PAD.  © FITT 1 FITTskills: International Trade Finance Case Study #1: New Modes of Trade Finance Major Considerations Security Internet-enabled business, including online financial transactions, has evolved significantly over the past decade, from blue-sky vision to practical tool and enabler. Despite the recognized progress, security remains a legitimate concern in considering online payments – as much in terms of the transaction and the flow of payment, as in terms of the overall risk profile of a transaction. While PAD is generally focused on retail sales, the company is looking at larger shipments to certain markets, and may face exposures as high as $150,000 in a single deal. Open account Banks across the globe are recognizing that importers and exporters are shifting significant business volumes – in fact, the majority of trade – to open account terms. Some of the financial institutions have interesting offerings in this space, and Palate-Able Delights could benefit from doing business on openShow MoreRelatedSelecting Trade Banker1089 Words   |  5 PagesCase Study #3: Selecting a Trade Banker Banking on relationship Technon International is a Canadian high-technology development firm, focused on emerging technologies in wireless communications. Technon sources components in China and has offshore programming activities in India covering certain functionality in its new wristwatch PDA with MP3 and cellular capabilities. Technon has several Canadian and international patents to protect its proprietary technology, and has developed some strongRead MoreFitt Case Study872 Words   |  4 PagesFITTskills: International Trade Finance Sixth Edition Course Objectives †¢ Define and discuss the â€Å"Four Pillars† of trade finance— payment facilitation, risk management, financing and the provision of information related to a transaction †¢ Describe the impact of technology on trade finance †¢ Describe the major products and services related to trade finance, including the role and requirement of each party to a transaction †¢ Discuss the importance of export credit agenciesRead MoreAnalysis Of International Banking1192 Words   |  5 Pagesthe industry. Trade Finance is one such segment that is typically driven by the traditional methods of processing and also is laid back in terms of adopting the disruptions. This segment has not changed much in past few decades. 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The Forward Premium Puzzle Can Be Referred1494 Words   |  6 PagesIntroduction The forward premium puzzle can be referred to as the forward premium anomaly in the capital markets. A forward premium can be described as a situation where the future exchange or the spot future exchange trades at higher spot exchange rate compared to the domestic currency. Using descriptive measures, the forward premium can be measured as the difference between the forward rates. The prevailing spot rate and which also includes the domestic currency is expected to increase when theRead MoreThe World Trade Organization Essay1690 Words   |  7 Pagesinstitutions i will be talking about include the World Bank, International Monetary Fund and the World Trade Organisation. These organisations provide loans, grants and practical assistance to governments, in addition to loaning money to assist private businesses within developing countries. They also play a significant role in the privatisation and overseeing of public utilities and natural resources. The World Bank (WB) and the Inter national Monetary Fund (IMF), often called the Bretton Woods InstitutionsRead MoreScript on Annual Day Function1580 Words   |  7 PagesCommerce: Paper III- International Business Relations. Quantitative Techniques : Paper III-Mathematical Methods. Banking Finance : Paper III- Introduction to Banking in India. 11:00 a.m to 02:00 p.m. Financial Accounting Auditing : Paper-III Financial Accounting. Economics – Paper III. Business Management : Paper III- Management Organisation Development. Commerce: Paper III- International Business Relations. Quantitative Techniques : Paper III-Mathematical Methods. Banking Finance : Paper III- IntroductionRead MoreFinancial Aspects Of Terms Of Payment Transactions1292 Words   |  6 PagesIntroduction In our study of different financial aspects, we learnt a very important concept of terms of payment during transactions in trade. †¢ Cash-in-advance †¢ Letters of credit †¢ Documentary Collections Now, let us discuss in details each of these types so that we are able to decide which will be the most suitable at what time (Mitra, 2005). Cash-in-advance Cash-in-advance payment method is the most secure method in the perspective of an exporter as it eliminates the default risk on the partRead MoreBUSINESS ECONOMICS-COURSEWORK 1) Discuss advantages and disadvantages of Free International1600 Words   |  7 PagesBUSINESS ECONOMICS-COURSEWORK 1) Discuss advantages and disadvantages of Free International Trade? The Advantages of Free International Trade: ïÆ'Ëœ Greater assortment of stock available for use – global exchange aggregates various mixture of a particular thing from unique ends of the line. ïÆ'Ëœ More work could be created as the business for the countries products increases through trade. Overall trade associates generate more professional occupations. This will help countries chop down their unemploymentRead MoreEco 372 Week 5919 Words   |  4 PagesInternational Trade and Finance Speech International Trade and Finance Speech The current state of the U.S. macro economy is made up of a plethora of highly involved processes. I am going to attempt to explain some simple terms and concepts focused on international trade and foreign exchange rates. Foreign Exchange Rates One needs to have a base level understanding of what defines an exchange rate. According to Investopedia, a foreign exchange rate is â€Å"The price of one countrys currency