2. Review shipping and airfreight services available for transporting
2.1. Identify airlines and air cargo services operating in and out of
2.2. Compare configuration and carrying capacity of different types of
1. Who are the parties in a tender process and what are their roles and
obligations? What is unusual or unique about the overall process?
A tender process consists in three parts: the buyer, the seller and the
bank (direct or indirect guarant
SUGGESTED SOLUTIONS TO CHAPTER 4 PROBLEMS
1. From base price levels of 100 in 2000, Japanese and U.S. price levels in 2003 stood at
102 and 106, respectively.
a. If the 2000 $: exchange rate was $0.007692, what should the exchange rate be in
1. How should the examination of a Letter of Credit on receipt be
conducted by the beneficiary to ensure its terms are acceptable?
When issuing, receiving and handling the necessary documents of a
Letter of Credit on receipt, not only the ben
1. What are the benefits of arranging payment as a Letter of Credit?
Considering Letters of Credit (LC) are the most used method of payment
for international transactions, their advantages are many. The importers have
their risks minimised, o
Task 1 Exercises
1. Collect 5 different examples of publicly available Request for
Offers. Select them from different sources, i.e. local and national
newspapers, the internet, trade magazines, etc. For each one,
identify and discuss the main
1. What separate elements do a Bill of Exchange cover?
According to the Negotiable Instruments Act (1881), a Bill of Exchange is defined as
an instrument in writing containing an unconditional order, signed by the maker,
directing a certain p
1. What are the methods of payment that can be used in trade? Make a list and
According to the International Trade Administration (n. d.) the methods of payment
in international trade are four:
Cash in Advance: the payment
1. What does the term trading bloc mean to you?
The term trading bloc refers to an agreement two or more states, regions or
countries can have in order to engage and reduce the trade barriers between
those who take part in that agreement. The
A current-account surplus is not always a sign of health; a currentaccount deficit is not always a sign of weakness. Comment.
Before commenting about the aforementioned statement, the definitons
of current-account surplus and current-account defic