Financial and Legal Costs/Activities

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Gftp.svg Unit 4.8-Financial and Legal Costs 

Introduction | Bank Charges | Insurance Premiums | Export Credit Insurance | Legal Fees | Summary | Resources | Activities | Assessment

Activity[edit | edit source]

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[edit | edit source]

Order Value - 2,000,000
Profit Margin – 40%
Currency - USDollars
Your role – Exporter

Scenario B[edit | edit source]

Order Value – 15,000
Profit Margin – 60%
Currency – Euro
Your role - Exporter

Scenario C[edit | edit source]

Order Value – 250,000
Profit Margin – 30%
Currency – Japanese Yen
Your role – Importer

Scenario D[edit | edit source]

Order Value – 75,000
Profit Margin – 50%
Currency – US Dollars
Your role - Importer

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