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Consider this short scenario and discuss the following questions, in the forum discussions.

Consider this short scenario and discuss the following questions, in the forum discussions.

You are the sales director for a manufacturer in your country and have just received a rather large order from a new customer in a new country. Normally, this would be great news, but it has filled you with dread. The last time you received an order from this country things went really badly. You offered the normal 90 days for payment and at some point the goods (and the customer) disappeared after the goods left the port. Although the insurance paid out part of the loss, it cost the business US$250,000. It nearly cost you your job. You feel that you might be being unfair to this new customer, but your inclination is to demand advance payment in order to protect your business and job.


  1. What is advance payment and is it usual for it to take place when the two parties have not traded with one another before?
  2. Why might the buyer be concerned about this arrangement and uncertain as to whether to proceed?
  3.  Suggest how you could protect your company and at the same time not penalize the customer.

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