International Trade Settlement Risk And Prevention

With the acceleration of economic globalization, trade diversification andincreasingly close cooperation between the countries, as of2013, the trade value ofChina’s imports and exports topped$4trillion, an increase of201times more than in1978, trade in goods ranking more is the first to rise to the world, has made remarkableachievements. Made simultaneously in this achievement, the risks can not be ignored isthe existence of export transactions, particularly international settlement risk exists inrespect of export enterprises to serious financial risk and operational risk production,hindering China’s foreign trade export business development and growth.China’s export enterprises currently part of the international settlement, foreigncompanies generally choose three international settlement Settlement: Most of theforeign trade enterprises to choose the credit settlement, to some extent, in this wayavoiding the corporate foreign exchange risks, but also relatively weakened theinternational competitiveness of enterprises; there are some export companies chooseto remit the balance sheet approach to international settlement business, thissettlement is simple and convenient, but a strong dependence on the commercial credit,export enterprises need to focus on customer credit and payment before the goods tothe way that this settlement the highest risk factor for exporters, either credit or cashon delivery or payment in advance, there is no point in a balanced boundary betweenimporters and exporters, and therefore less subject to exporters Welcome; finallyexists a small number of export enterprises to adopt international settlement collectionmethods, this settlement is the importer needs to guard against credit risk andoperational risk, in particular the difference D/A and D/P settlement of, requiresexporters in advance in consultation with the importer to determine what kind ofcollection using a final settlement operations. Under normal circumstances, China’sexport enterprises according to their actual situation, taking into account the current international and domestic economic environment, social environment and theexchange rate situation, the spirit of risk minimization, profit maximization principle,choose the most suitable for their own settlement transactions to better ensure thecompletion of the transaction, and promote the health of China’s foreign trade industry,long-term development.The purpose of this paper is at risk of settlement of international research to give afresh new concept of international settlement and classification are discussed in detailin three different ways for International Settlements, and explains the main risks existin a variety of ways while on how to improve the security issues on the internationalsettlement gives the feasibility of precautionary measures, in order to be able tocontribute to the development of modest cause of China’s foreign trade, and promotethe overall national economy towards a modern, healthy and orderly development ofglobalization direction.