Free Online Course in International Business

Knowledge Statement

Knowledge of Communication of Letters of Credit, Collections, and Associated Documents Electronically via the Internet ( eUCP, SWIFT)

Activity

This activity is a web research exercise designed to allow you to research and identify the different types of communication systems set up by banks. Choose a commercial bank that conducts international banking and identify

·        the bank’s website.

·        the type of internal letter of  credit application systems.

·        eUCP opportunities.

·        foreign currency exchange systems.

·        currency transfer and tracking systems.

Assessment

1.                     The changes in technology have required international businesses organizations to

a.      rely solely on internet communications.

b.      maintain requirements for hard copies only.

c.       watch and observe the changes from the sidelines.

d.      adapt their guidelines to internet communications.

2.                     The eUCP provides banks with guidelines to

a.      use electronic Incoterms for international transactions.

b.      electronically communicate and transmit documents for documentary collections.

c.       electronically communicate common business practices.

d.      use electronic methods of payment for international transactions.

3.                     When issuing documents for a letter of credit, freight forwarders must ensure they

a.      comply perfectly with the letter of credit.

b.      arrive at the bank immediately.

c.       arrive at the buyer’s office immediately.

d.      comply with the wishes of the seller.

4.                     The standard messaging system used by banks around the world is known as

a.      EBanking.

b.      ESystem.

c.       SWIFT.

d.      SWEAT.

(Correct answers: 1=d, 2=b, 3=a, 4=c)