| Description |
1 online resource : illustrations |
| Series |
SAGE Business cases |
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SAGE Business cases
|
| Summary |
Preeti Dutta joined M/S Gupta Exports Ltd., located in Kolkata, India, as the marketing manager in April 2020. This start-up company established in March 2017 by two new-generation young entrepreneurs imports leather, then manufactures leather garments, and finally exports the same to many countries. Dutta's role expectation was to negotiate trade contracts with overseas suppliers of raw materials and machines as well as overseas buyers of ready-made leather garments. She needed to expand both the top and the bottom line of the company, while at the same time minimizing the payment or credit risk of international trade. By April 30, 2021, one year into her job, she realized that full advance payment was not the appropriate trade term or payment method in the current competitive environment, as it resulted in lost business opportunities. Similarly, the documentary collection method was not in the long-term interest of the business, as it led to spikes in delayed payments and bad debts. After attending a seminar on promoting exports from India, Dutta decided it was time to evaluate various payment methods in international trade and select the best payment mechanism to expand sales in a competitive market scenario and at the same time minimize the payment risk. This case allows for a discussion of various payment methods prevalent in international trade, their advantages and disadvantages for both the exporters and the importers, as well as the concept and workings of letters of credit (LC) as a credit risk mitigation tool for the exporter and credit enhancement device for the importer |
| Bibliography |
Includes bibliographical references and index |
| Notes |
Description based on XML content |
| Subject |
Letters of credit -- India -- Case studies
|
|
Business enterprises -- India -- Case studies
|
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Payment -- India -- Case studies
|
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Business enterprises.
|
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Letters of credit.
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Payment.
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India.
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| Genre/Form |
Case studies.
|
| Form |
Electronic book
|
| ISBN |
9781529794038 |
|
152979403X |
|
