And merchandise later bills importer later chapter 11

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Unformatted text preview: ships Exporter merchandise and merchandise later bills importer later Chapter 11 - 7 Documentary Collection Bank acts as intermediary without accepting financial risk Draft (bill of exchange) Document that orders an importer to pay an exporter a specified sum of money at a specified time Bill of lading Contract between an exporter and shipper specifying destination and shipping costs for merchandise Chapter 11 - 8 Documentary Collection Process Chapter 11 - 9 Letter of Credit Importer’s bank issues a document stating that the bank will pay the exporter when exporter fulfills document’s terms Irrevocable Revocable Confirmed Chapter 11 - 10 Letter of Credit Process Chapter 11 - 11 Licensing Company owning intangible property (licensor) grants another firm (licensee) the right to use it for a specified time Advantages + + + + Finance expansion Finance Reduce risk Reduce Reduce counterfeits Reduce Upgrade technologies Upgrade Disadvantages – – – Restrict licensor’s future Restrict Reduce global consistency Reduce Lend strategic property Lend Chapter 11 - 12 Franchising Company (franchiser) supplies another (franchisee) with intangible property over an extended period Advantages Disadvantages + + + Low cost and low risk Low Rapid expansion Rapid L...
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