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1、37．Explain briefly the following methods of payment：cash in advance；open account；consignment transactions． 参考答案： (1)Cash in advance：when the political and economic situation in the importing country makes payment un’certain or when the buyer’s credit standing is dubious．the exporter may prefer cash in advance．In this case the im—Dorter has no guarantee that the exporter will fulfill his obligations once he has made payment by cash．(2)If the buyerand the seller know each other well．they may decide to trade on open account．This means that no documents are in—volved and that legally the buyer can pay anytime．The seller loses all control over the goods once they haveshipped．Sales on this basis are usually paid for by periodic payments，and obviously the exporter must have sufficientfinancial strength to carry the cost of the goods until receiving payment．(3)If the exporter wishes to retain title orownership to the good he can enter into consignment transactions．This means the exporter has to send his goodsabroad and will not get payment until the goods are sold. If not sold,the goods can be shipped back. (1)Cash in advance：when the political and economic situation in the importing country makes payment un’certain or when the buyer’s credit standing is dubious．the exporter may prefer cash in advance．In this case the im—Dorter has no guarantee that the exporter will fulfill his obligations once he has made payment by cash．(2)If the buyerand the seller know each other well．they may decide to trade on open account．This means that no documents are in—volved and that legally the buyer can pay anytime．The seller loses all control over the goods once they haveshipped．Sales on this basis are usually paid for by periodic payments，and obviously the export
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