The Risks Prevention Of International Setllement In International Trade

The major international trade settlements have three major ways: letters of credit, collection and telegraphic transfers. Collection and telegraphic transfers are on the basis of commercial credit. For the banks do not bear all risks responsibilities in the process of delivery, performance and payment. But only by the parties entrusted with the role of an intermediary to pay, which means that importers and exporters have to bear their own huge risks. It is precisely because of the unreliability of commercial credit, bank credit has been produced. The letter of credit make payment obligations fulfilled by the importer, transforming the banks to fulfill payment, which ensures that exporters receive payment promptly security, but also to ensure importers shipping documents received in time to get the goods. Therefore, to some extent, the letter of credit solves the mutual distrust between the import and export of contradictions. Different means of settlement have their different characteristics, there are different risks, and how to make good use of their respective advantages to reduce risks and promote the healthy development of international trade is an important topic.The article mainly research the risks and its prevention measures all parties involving in three payment modes (mainly refer to exporter, importer and related banks), introduces the characteristics and concepts of three international settlement instruments, detailed analysis of the advantages and disadvantages of various means of settlements, the various parties' rights and obligations, in the case of the foundation, it revealed the risks in the process of trade faced by the relevant parties, and have a detailed study and research concerning that how to defuse the risks and take the corresponding measures to prevent risks.This thesis is composed of three parts.In the first part, introduce the related concepts and characteristics of L/C, OC and T/T, comprise to the three settlement instruments, reveal the respective regulations and conditions.In the second part, analyze the risks of the three settlement instruments; introduce the reason and the consequence of all kind of risks.In the third part, introduce measures adopted by related parties of three settlement measures, analyze that how to use international regulations to prevent risks and deal with risks.