Free Online Course in International BusinessTask 5Select appropriate methods, terms, and currency of payment to agents, sales representatives, distributors, suppliers, and international joint ventures.IntroductionThe Trade Finance domain of the NASITE CGBP is focused on the global business professional who is a generalist who may be involved in the sale and/or purchase of goods and/or services internationally. It is essential that a global business professional understand and be able to use the methods of payment available for international business transactions. You will need to be able to determine and select the appropriate method of payment, terms and currency that pertain to the different modes of entry available to international markets. Task 5 consists of two knowledge statements. The challenge for any global business professional in understanding this information is that decisions will be affected by the level of country and commercial risks present in the market and the product or service being offered. It is important, then, that you are comfortable with Tasks 1 and 4 of this Domain as well.In this task, you will gain • knowledge of terms and condition of purchase or sale. • knowledge of resources: banks, U.S. government agencies, International Chamber of Commerce, and others that may become available. These knowledge statements provide an outline for the terms and conditions of purchase or sale as well as the resources available to support the purchase or sale. Understanding how each of the knowledge statements relates to and affects the others is also important. You must • know the methods of payment and their associated risks for the buyer and seller. • be able to select the appropriate mode of entry into a market and the terms of sale, which are often dependant on the commercial, economic and political risks evident in a country and will dictate the method of payment chosen for the transaction. • know how the modes of entry for international transactions will dictate the ways business is conducted as well as the costs and the responsibilities for each party involved. • know the responsibilities of each party that should be defined clearly in a contract, realizing, however, that the rules governing such instruments are dependant on the countries and parties involved in the transactions. • be aware of and know how to utilize available international business resources that may reduce the risks and cost of doing business. This task is a bit different in that you will have full understanding only when you become comfortable with many of the tasks related to the Marketing Domain as well as Tasks 1 and 4 of the Finance Domain. Review these if necessary. Go step by step through the knowledge statements presented here so that you will have full command of terms and know the best options for any situation.
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