1. payments & Foreign travel ads
Week 3 Lesson

2. Methods of payment Payment in Advance Open Account (Paid after)
Rare in foreign trade (trust issue)
Common in large orders
Two are common for small orders:
Cash With Order (CWO) – Importer pays for goods when orders placed
Cash On Delivery (COD) – Goods are sent and released only after payment of invoice/delivery
Only for regular/reliable customers
Payment made in a specified period after receiving goods
Usually 30, 60, or 90 days after invoice date

3. Methods of Payment Bank Transfer Bill of Exchange/Draft
Most common and fastest for international payments
Importer instructs its bank to transfer to exporter’s bank
SWIFT Code (inter-bank transfer ID code)
Used as a form of credit (payment received after a set period of time)
Drawer, Drawee, Payee (usually drawer)
Before supplying goods exporter stipulates a B/E and send it to importer (drawee)
Sight draft o Fixed date

4. Letter of Credit Best security for the exporter
Exporter agrees to supply goods when a foreign customer opens a letter of credit with reputable bank (issuing bank)
The L/C is sent to exporter’s bank (advising bank) with all specifications:
Description of goods, time & place of delivery, documentation required, etc.
When documents are submitted to the importer’s bank the credit will be released and the supplier will be paid

5. Confused? L/C Transaction
Importer: asks their bank to write an L/C in favor of exporter
Importer’s Bank: sends L/C to exporter’s bank
Exporter’s Bank: confirms L/C
Exporter: ships goods and receives documents from shipping agent. Gives documents to their bank
Exporter’s Bank: if documents are correct sends them to importer’s bank and pays the exporter
Importer’s Bank: pays back exporter’s bank and gives shipping documents to importer
Importer: gives shipping documents to shipping line and receives goods
Confused?
L/C Transaction

6. Foreign Travel Advertising
You may need to change the image of the country (ex. Some people think of India as poor and dirty)
Highlight unique places/aspects of a country (don’t show things that are similar to the readers’ country)
You may need to inform readers about little know places (weather, customs, currency)
If necessary ease any fears

7. Things to consider
Remember who your readers are (think of what they want)
What kind of tourists do you want?
TASK: Write a headline and 100 word copy ad for Italy. Decide who your readers are:
- US backpackers (20-30 years old)
- Australian retirees
- French families