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3. Example: How about meeting each other half way, 50% by letter of credit and the balance by D/P? —I’m sorry It can’t be helped. Prompts: (1) Can’t you make your terms of payment easier for us? Opening an L/C will cost us much more money. —I’m sorry It can’t be helped. (2) Can you advance shipment to February? We need the goods urgently. —Our manufacturers are heavily committed as it is. I’m sorry It can’t be helped. (3) It seems your price has been raised again since last year. —Well, all prices are on the rise. I’m sorry It can’t be helped. Payment is to be made by an irrevocable letter of credit ___________ shipping documents. With an eye to future trade, the exporter finally agreed to accept D/P _________ sight. We have been put ___ no end of expense by your delay in establishing the relative L/C. The seller and the buyer arrived _____ an agreement on the problem of price. Under the circumstances, we have no choice ___________ to sell the goods elsewhere. We find it impossible to agree ___________ your terms of payment. Sometimes, it doesn’t pay ___________ an importer to open an L/C with his bank, as it involves great expenses. The Japanese-made goods are being offered _________a much lower price than yours. against at/after to at but to for for The task for this unit: decide the term of payment. A and B come to the discussion of terms of payment. A wants payment to be made by confirmed and irrevocable letter of credit, payable against shipping documents, while B prefers D/A or D/P. Both parties have reasonable explanations about their choices. B mentions that D/A or D/P is the usual international practice. A explains to him why he insists on L/C payment and finally succeeds in persuading him to accept it. At last, they decide the payment to be made by confirmed and irrevocable letter of credit, 60 days after sight. 8. Which term of payment does the exporter prefer to use? Why? Cash in advance and letter of credit. (Open). There
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