Is The Letter of Credit Losing Its Significance? A New Payment Method in International Trade- BPO Bank Payment Obligation


Özkan Ö., Bayram O., Karakaya G., Cesur E.

International Journal of Arts and Commerce, vol.3, no.7, pp.50-58, 2014 (Journal Indexed in ESCI)

  • Publication Type: Article / Article
  • Volume: 3 Issue: 7
  • Publication Date: 2014
  • Title of Journal : International Journal of Arts and Commerce
  • Page Numbers: pp.50-58

Abstract

The head of the topics we qualified as ABC of international trade issue is the “risk” fact. Especially in order to avoid the risk of the companies which are traded firstly and the countries of these companies, and to guarantee the cost of goods more secure finance techniques are used. One of the main purposes of the companies involved in global trade is to increase market penetration, the other one is to take the cost of the sold good and service on time and safely. At this point, the economic power, geopolitical location and political stability of the countries which are imported and exported play important role in determining the mode of payment which is used in trade. In our essay, after a brief look on the payment methods used in international trade, we try to give information about BPO (Bank Payment Obligation), which is a new form of payment, in detail and comparatively.