Lesson10 International Pay ment Generally speaking, it is not very difficult for buyers and sellers in domestic trade to get to know each other’s financial status and other information, and payment is likely to be made in a straightforward manner, say (for example)by remittance or by debiting the debtor’s account
In international trade, however, things are far more complicated
Purchase and sale of goods and services are carried out beyond national boundaries, which make it rather difficult for the parties concerned in the transaction to get adequate information about each other’s financial standing and creditworthiness ( 资信;信誉)
Therefore, mutual trust is hard to build
Both the exporter and importer face risks as there is always the possibility that the other party may not fulfill the c