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choices MNEs have for handling international trade payments

Analyse the choices MNEs have for handling international trade payments. What are the main issues that affect their decisions? Explain your answer. See Shenkar and Luo, 2008, International Business pp. 379-384.

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There are numerous choices for handling international trade payments.

The first choice is advance payment, wherein the exporter receives the payment in advance before shipping the goods or providing the service to the customer in other country. This is the safest and simplest method for the exporter to handle export payments.

Another popular method is letter of credit or LC, wherein the issuing bank or bank of the importer issues a written undertaking on behalf of the import to pay the ...

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Analyse the choices MNEs have for handling international trade payments. What are the main issues that affect their decisions?

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