Credit Management under Globalization Analytical Essay

Credit Management under Globalization
Looks at modern standardized banking methodology for evaluating documentary credit.
# 148069 | 1,330 words | 5 sources | APA | 2011 | PK
Published on Aug 30, 2011 in Business (Law) , Business (Finance, Investment and Banking) , Business (International) , Law (Business)


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Description:

This paper explains that globalization has increased the bank's role in facilitating the international market by providing security and assistance in making payments via their services of documentary credit. Next, the author evaluates, in terms of cost and security, the traditional, widely used methods of letters of credit (LC) and open accounts. The paper concludes that currently the banking systems have made open accounts cheaper and safer option for international payments by using Bank Aval and Credit Insurance.

From the Paper:

"Many law making has been done into make LCs or Letter of Credit safer than other methods of documentary credit and this one reason why this system is so safe. The law that contains terms regarding the documentary credit is known as UCP. In particular, UCP 500 was the section which was about the standardized documentary credits. The revision was made to the old UCP 500 and it was revised and some of the terms were eliminated while other terms were added and the new article was renamed "UCP 600". The UCP 600 forms a contractual relationship between the buyers and sell and sets out the responsibilities for the buyer and the seller."

Sample of Sources Used:

  • John Sloman. (2000). Economic. Prentice Hall
  • Wachowicz and Horne. (2004). Fundamentals of Financial Management. Pearson.
  • Learning GTI. (2010). Documentary Credit Evaluation. Retrieved on 7 Jan 2010. http://www.ebsi.ie/files/import_documentary_credits.pdf
  • Tucker and Arensberg. (2007). the new UCP 600: Changes From UCP 500. http://www.tuckerlaw.com/visit/The%20new%20UCP%20600%20BWM%20Presentation.pdf
  • Harold Randall. (1994). Accounting. Letts Educational.

Cite this Analytical Essay:

APA Format

Credit Management under Globalization (2011, August 30) Retrieved May 27, 2023, from https://www.academon.com/analytical-essay/credit-management-under-globalization-148069/

MLA Format

"Credit Management under Globalization" 30 August 2011. Web. 27 May. 2023. <https://www.academon.com/analytical-essay/credit-management-under-globalization-148069/>

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