Capital & Financial account ➢ capital item ➢ financial item
§1.1What is “International Settlement”
International Settlement
Financial activities conducted among
financial activities across the borders generated in the course of other economic,political and cultural contracts.
Key issues in international settlement:
financing and payment? Etc...
§1.1What is “International Settlement”
➢International Trade Settlement
financial activities arisen from international commercial transactions.
➢International Non-trade Settlement
§1.1 What is“International Settlement”
Commodity Production Exchange of commodity Circulation of Commodity Circulation of Currency
§1.1 What is “International Settlement”
Focal and difficult points
The historical development of international settlement and its system; the fund clearing systems in major international financial centers.
Settlement
To pay an obligation
§1.1 What is “Internationቤተ መጻሕፍቲ ባይዱl Settlement”
Balance of payment : Current account
➢ Goods ➢ Services ➢ Income ➢ current transfers
Key terms
Settlement, International Trade Settlement,"Cargo Documentation", "Performance Certification", Control Documents, Correspondent Bank, Bank Account.
Content of Chapter One
What is “International Settlement” The history of development of International Settlement Condition of International Settlement
❖Who bears the credit risks?
❖Who finances the transaction? ❖Who will bear transportation costs and risks? ❖In what currency will payment be made? ❖What are the political and legal risks? ❖ What are the costs of each method of
different countries in which payment are transferred from one country to another , in order to settle accounts, debts, claims, etc. emerged in the course of political, economic or cultural contracts among them.
International Settlement
➢ International Settlement : An Overview ➢ Instruments of payment ➢ Remittance & Collection ➢ Letter of Credit ➢ Documents ➢ Bank’s letter of guarantee ➢ International Factoring ➢ International Forfaiting
International Settlement
Lecturer: shao xinli
Course teaching goal
This course is designed to help students to understand the fundamentals and basic methods of international settlement, grasp the basic skill of the international settlement practice operation. Its primary aim is to realize the purpose that " learn, realize and get it".
Chapter One
International Settlement An Overview
Teaching purpose
Find out about the concept, developing history and system of international settlement; grasp the concrete conditions of international settlement.