Unit 5 (P2) International Business.
(P2) Explain the types of finance available for international business.
- Letter of Credit
Describe what a letter of credit is.
Who will rely on a letter of credit?
Why use a letter of credit?
Describe the advantages for seller and advantages for buyer.
Finally, list other types of letters of credit.
Use the link below to help you answer the above question. (Remember you must put in your own words!!)
- Bank Loans
Fully define/ describe what a bank loan is.
Explain at least one advantage of a bank Loan
Explain at least one disadvantage of a bank loan.
Use the link below to help you answer the above question. (Remember you must put in your own words!!)
- Prepayment by the importer.
Fully define/ describe what a bank loan is.
Use the link below to help you answer the above question. (Remember you must put in your own words!!)
- Commercial Banks.
Describe briefly what commercial banks are and what their role.
Commercial banks are also called ‘Merchant banks’ as they provide trade finance. Explain.
Use the link below to help you answer the above question. (Remember you must put in your own words!!)
- Export credit agencies
Describe briefly what these agencies are and what their role is.
Use the link below to help you answer the above question. (Remember you must put in your own words!!)
