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Unit 4.8-Financial and Legal Costs |
Introduction | Bank Charges | Insurance Premiums | Export Credit Insurance | Legal Fees | Summary | Resources | Activities | Assessment |
Activity
Based on the available methods of payment for international transactions, identify the costs associated with each. Using the following scenarios, identify which methods of payment make sense to use and which do not make sense from cost perspective only:
Scenario A
Order Value - 2,000,000
Profit Margin – 40%
Currency - USDollars
Your role – Exporter
Scenario B
Order Value – 15,000
Profit Margin – 60%
Currency – Euro
Your role - Exporter
Scenario C
Order Value – 250,000
Profit Margin – 30%
Currency – Japanese Yen
Your role – Importer
Scenario D
Order Value – 75,000
Profit Margin – 50%
Currency – US Dollars
Your role - Importer
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