Open account means that payment is left open to an agreed-upon future date. It is
one of the most common methods of payment in international trade and many large
companies will only buy on open account. Payment is usually made by wire transfer
or check. This can be a very risky method for the seller unless he has a long and
favorable relationship with the buyer or the buyer has excellent credit. Still, there are
no guarantees and collecting delinquent payments is difficult and costly in foreign
countries especially considering that this method utilizes few official and legally
binding documents. Contracts, invoices, and shipping documents will only be useful
in securing payment from a recalcitrant buyer when his country's legal system
recognizes them and allows for reasonable (in terms of time and expense)
settlement of such disputes.
Titany answered the question on November 25, 2021 at 11:24
- Discuss hybrid as a method of international sourcing(Solved)
Discuss hybrid as a method of international sourcing
Date posted: November 25, 2021. Answers (1)
- Discuss documentary collection as a method of international sourcing(Solved)
Discuss documentary collection as a method of international sourcing
Date posted: November 25, 2021. Answers (1)
- Discuss commercial letter of credit as a method of international sourcing(Solved)
Discuss commercial letter of credit as a method of international sourcing
Date posted: November 25, 2021. Answers (1)
- Discuss cash in advance as a method of international sourcing(Solved)
Discuss cash in advance as a method of international sourcing
Date posted: November 25, 2021. Answers (1)
- List the common payment methods for international sourcing(Solved)
List the common payment methods for international sourcing
Date posted: November 25, 2021. Answers (1)
- List Six International Sourcing Costs(Solved)
List Six International Sourcing Costs
Date posted: November 25, 2021. Answers (1)
- Briefly describe early supplier involvement (ESI)(Solved)
Briefly describe early supplier involvement (ESI)
Date posted: November 25, 2021. Answers (1)
- Describe two techniques used in vendor rating stating their advantages and disadvantages (Solved)
Describe two techniques used in vendor rating stating their advantages and disadvantages
Date posted: November 25, 2021. Answers (1)
- What is Vendor Rating?(Solved)
What is Vendor Rating?
Date posted: November 25, 2021. Answers (1)
- Techniques used in supplier appraisal(Solved)
Techniques used in supplier appraisal
Date posted: November 25, 2021. Answers (1)
- Define the term supplier appraisal
(Solved)
Define the term supplier appraisal
Date posted: November 25, 2021. Answers (1)
- List two supplier assessment methods(Solved)
List two supplier assessment methods
Date posted: November 25, 2021. Answers (1)
- Discuss five supplier sourcing policies (Solved)
Discuss five supplier sourcing policies
Date posted: November 25, 2021. Answers (1)
- Differentiate between single and multiple sourcing in a business environment(Solved)
Differentiate between single and multiple sourcing in a business environment
Date posted: November 25, 2021. Answers (1)
- Ways of expressing procurement relationship(Solved)
Ways of expressing procurement relationship
Date posted: November 24, 2021. Answers (1)
- Write short notes on checklist for supplier visit(Solved)
Write short notes on checklist for supplier visit
Date posted: November 24, 2021. Answers (1)
- Factors affecting the selection of a supplier(Solved)
Factors affecting the selection of a supplier
Date posted: November 24, 2021. Answers (1)
- Ways of locating oversees suppliers(Solved)
Ways of locating oversees suppliers
Date posted: November 24, 2021. Answers (1)
- Sources of information about overseas suppliers(Solved)
Sources of information about overseas suppliers
Date posted: November 24, 2021. Answers (1)
- Levels of offshore sourcing according to Trent and Monczka (2005)(Solved)
Levels of offshore sourcing according to Trent and Monczka (2005)
Date posted: November 24, 2021. Answers (1)