• Korea Trade Review
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• v.44 no.5
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• pp.161-174
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• 2019

Recent studies on trade payment methods have suggested various alternatives to replace remittance payments. However, these studies theoretically provided the possibilities and limitations of each alternative. To check recent changes in trade practices, our research analyzed payment methods in international trade e-marketplace. Using company and product information obtained from Alibaba.com, we analyzed payment methods used in this e-marketplace and examined determination factors for new payment methods. According to the results of logistic regression analysis, we found a relationship between new payment method and factors such as market competition and the age of the company. Also, providing Paypal payments showed a correlation with market competition and price level of products as well as e-commerce infrastructure. Though these study results feature limitations in the generalization of results, it contributes to the research on payment method trends in international trade.

• Korea Trade Review
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• v.46 no.1
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• pp.23-38
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• 2021

This paper investigated the preference change of payment terms in international trade along with counteroffer or first offer conditions of the other parties. Studies on trade payment terms have mainly focused on payment term determination factors such as firm size, product price level, country credit rate, etc. We tried to find other factors affecting payment terms choice, during the negotiation process. We applied behavioral economics theories such as 'Status Quo Bias' and 'Anchoring effect' to build our research model. To prove the existence of the above effects, we proceeded with field experiments to the exporting companies in Alibaba.com. Both 'Status Quo Bias' and 'Anchoring effect' were found in the field experiment. Most of the exporting companies preferred traditional payment methods to new payment methods. And an initial request for a low advance payment ratio led to a lower advance payment ratio. Also, the experience of using new payment methods could diminish status quo bias. This paper applied behavioral economics theories and field experiment methodology to the payment term studies in international trades. These attempts could contribute to expanding the diversity of methodology and scope of international trade studies.

• The Journal of Fisheries Business Administration
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• v.32 no.2
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• pp.73-89
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• 2001

The market conditions of sea mustard is changing by overproduction, decreasing price, Import of blanched and salted sea mustard from China into Korea domestic market and increasing market share of sea mustard of China in Japan. In addition, the price support program in sea mustard aquaculture must be modified due to the restriction of domestic support by international organization such as WTO. There are two ways to solve those problems. First is that finding a way to solve the overproduction of sea mustard. One of possible ways is the production adjustment by Marketing Order. Second is that finding an alternative way to replace price support program. The possible way is Direct Payment instead of purchase stockpile system. To introduce marketing Order, outlook center, organization of self-management, production adjustment through output control measure, improvement of market structure, and education/publicity arc necessary. Also, to implement marketing order, setting a model business by government is required. There are two steps for implementation of marketing order. First step is to construct Order Committee including organization of producer, people related marketing. However, this committee must run by government for certain short-term. Second step is to improve quality of product and acceleration of demand. At visual point that enforcement of the first step is completed, government has process that government transfers Order Committees self-correcting. It is desirable that government only conduct the support acts such as quality improvement and acceleration of demand. Also, at early stage it is necessary to have aid system for marketing order For example, we can expect that income increase by production adjustment in long run. However, in short run the income of producer may decrease so, it is required to compensate his economic lose. For compensation, The useful means that can be utilized is direct payment. Direct payment is not continued policy. Also, when production adjustment policy such as Marketing Order has effective results, Direct Payment as an assistant measure must be reduced or abolished. Therefore, when production adjustment acts as an effective tool to control overproduction, Direct Payment system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.46
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• pp.105-130
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• 2010

CISG provides the place of payment at the Article 57 which if the buyer is not bound to pay the price at any other particular place, he must pay it to the seller (a) at the seller's p lace of business or (b) if the payment is to be made against the handing over of the goods or of documents, at the place where the handing over takes place. When the parties have agreed that payment is to be made against the handing over of the goods or of documents, the place where this is to happen according to the contract or CISG is the place of payment. When the parties have not agreed to this, the place of payment is the seller's place of payment. The buyer does not send the money to seller's office, but pays it to the seller's bank account. Where payment is effected by a L/C, such operations shall be governed by UCP and collection of money governed by URC. The payment at the seller's place of payment affects the rate of interest, currency of money and jurisdiction which is interpreted by Brussel convention and Lugano convention. The principle on which the CISG is based, characterizes the obligation of payment as an obligation to be performed at the creditor's place of business. This principle affects the place of damage claims payable to be at the creditor's that place. Payment at the place of business is required, but not inside the place itself.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.149-177
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• 2013

This article introduces and briefly examines the Uniform Rules for Forfaiting (URF)(ICC Publication No. 800), which were prepared by a joint project of the Banking Commission of the International Chamber of Commerce (ICC) and the International Forfaiting Association (IFA), and became effective on January 1, 2013. Forfaiting is a kind of trade financing technic performed by way of a sale and purchase of payment claim between its seller and its buyer, the forfaiter, on a without recourse basis. URF is designed to facilitate global trade finance and embraces all the international payment instruments which are currently used and will be newly developed in the future. URF is expected to be a set of standardized terms and conditions for both the primary and secondary forfaiting markets. In this context, this article first looks into the concept of the forfaiting and certain features and structure of forfaiting transactions. Then this article moves to discussing URF itself. For this it examines (i) the nature and scope of URF and some important definitions provided in URF, (ii) some provisions of URF that apply to the delivery of documents to the forfaiter, the examination, and the acceptance or refusal, of such documents by the forfaiter, and (iii) the payment of purchase price by the forfaiter to its seller, including the matter of "payment under reserve" and repurchase by the seller from the forfaiter. Finally, this article examines liabilities of the parties concerned, before conclusion.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.51
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• pp.187-210
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• 2011

International transactions have the threat of non-payment by the buyer or non-performance by the seller. Parties tend to search for additional means of securing performance and payment beyond the mere agreement in the contract. Such security may be achieved by means of a letter of credit. When contracting parties have agreed to pay by means of a letter of credit, the buyer's bank takes upon itself the obligation to pay the purchase price when the seller tenders the documents that are stipulated in the letter of credit. The documents must comply strictly with the terms of the credit.. The documents play a crucial role in letter of credit transaction. The principles of abstraction, separability and strict compliance governing the letter of credit transaction are considered. The concept of fundamental breach of Article 25 CISG was discussed. This article examines whether a failure to deliver documents conforming to the terms of the letter of credit can constitute a fundamental breach of the sales contract as defined by Article 25 of the CISG by the seller and thereby enable the buyer to avoid the contract. For letter of credit transactions it should be accepted that the delivery of non-performing documents constitutes a fundamental breach, if the result of this breach is that the bank refuses to pay the price for the goods. On the other hand, in the interpretation of Article 25 CISG, it should be noted that if the parties have agreed to payment by means of a letter of credit, they have simultaneously agreed to apply the strict compliance principle to the delivery of documents in the sales contract. Finally the parties should ensure that inconsistency between the requirements under the documentary credit and the requirements under the contract of sale is avoided, since the buyer may be in breach of his payment obligation if the seller cannot get paid under the documentary credit when his documents conform with the contract of sale.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.41
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• pp.103-132
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• 2009

In international sales of goods, the buyer must pay the price for the goods as required by the contract and CISG, The buyer's this obligation includes taking such steps and complying with such formalities as may be required under the contract, which includes providing the seller with relevant letter of credit through the issuing bank. Where the parties have not stipulated the time limit within which the credit should be opened, but there is an agreed date or period for shipment, the time limit for the L/C opening should be calculated back from the agreed date of shipment or the first date of shipment, while, in addition, the buyer should open the L/C sufficiently earlier than the shipment date in order for the seller to be able to know the L/C's opening before beginning to ship the goods. The L/C provided the buyer should conform to the contract of sale. Therefore, for example, when an unconfirmed L/C is provided violating the agreement or the L/C opened states that, under a FOB contract, a "freght prepaid" bill of lading shall be presented as a required document of the L/C, the buyer has failed to perform his obligation. If the buyer fails to perform his obligations to provide the letter of credit, the seller may require the buyer to perform that obligation; may fix an additional period of time of reasonable length for performance of the obligation; or, the seller may declare the contract avoided, if the failure amounts to a fundamental breach of contract, or if the buyer does not, within the additional period of time fixed by the seller, perform the obligation; and the seller claim damages. However, when a relevant L/C has been issued for the seller, as a rule, he cannot ask directly for the buyer to pay the price before avail himself of the L/C first.

• International conference on construction engineering and project management
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• 2007.03a
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• pp.800-809
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• 2007

Current payment methods have many faults which are detrimental to the formation and completion of a project. This includes the use of unfair payment terms, pricing strategies and payment mechanisms between the contracting parties. This resulted in being criticised and remain in doubt, the use of current payment methods to reward good contractors and to distinguish poorly performed construction firms. In order to have an insight into this issue, a structured survey was conducted amongst UK construction practitioners. It was found that traditional pricing methods (i.e. lump sum and unit price), payment methods (i.e. interim valuation) and retention still dominate current practice. The empirical findings show that there are significant differences in the use of pricing and payment methods (when making and receiving payments) in construction. Significant differences also found in the factors affecting the choice of pricing methods when making (and receiving) construction payments. The paper concludes with analysis of the findings and future direction of research in payment systems is also provided.

• International Journal of Advanced Culture Technology
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• v.6 no.3
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• pp.151-162
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• 2018

In deriving the economic order quantity (EOQ) formula, it is tacitly assumed that the buyer has to pay product price while receiving the product from the supplier. However, as a marketing policy, some suppliers permit a delay in payments to the buyers to increase demand for the product they made. Credit transactions would have a positive effect on both suppliers and buyers. For a supplier who offers trade credit, it is an effective means of price differentiation to increase the demand for the product. Availability of opportunity to delay the payment in buyer effectively reduces the cost of holding stocks and therefore, the buyer has a lot of price options to choose his sales price for a customer. Since the buyer's order is affected by the customer's demand, the problems of determining the sales price and EOQ are interdependent and must be solved simultaneously. From this perspective, this paper evaluates the problem of determining the optimal sales price and EOQ for the buyer at the same time when the supplier allows a delay in payments for the product whose demand is represented as a function that decreases linearly with the sales price. For the analysis, it is also assumed that inventory is exhausted not only by customer's but also by decay.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.23
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• pp.39-70
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• 2004

On the above, character of Incoterms and CISG, applicability of Incoterms to the principles of interpretation of CISG for contracts terms, and to the regulations of delivery and payment of price in connection with applicability of Incoterms to CISG are discussed. Conclusions are as follows : Although both rules is regulations which have to understand in connection with int'l trades of goods but CISG is a comprehensive substantive law in connection with a whole dealing course. On the other hand Incoterms are detailed substantive law of performance for two important sphere, that is to say, delivery and payment in the field of performance of CISG. According to both rules, letter credit is realizing processes of detailed performance for delivery and payment. As professor of Honnold's opinion, the relationship between Incoterms and CISG is peculiar and complementary. Therefore instead of considering the both from a point of pure legal views which both rules raise many problems that still a wait well consolidated and acknowledged answers, we have th consider the both with L/C system that still constitute a main payment system. Particularly ICC and Uncitral know that they are not only directly and indirectly involved in regulating process of the both sets but also can apply Incoterms to CISG on connection with the use of L/C.