Why did the terms of payment in international trade change so much?

Hwang, Sangyeon; Im, Hyejoon

doi:10.1080/13504851.2018.1488042

Cited by 4 publications

(5 citation statements)

References 8 publications

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“…Moreover, trade finance provides instruments that protect one side of the contract against fraud from the other (Ahn & Sarmiento, 2019). Three types of payment methods have been commonly used in international trade, including the cash in advance, open account, and letter of credit approaches (Ahn & Sarmiento, 2019;Ganne, 2018;Hwang & Im, 2019;Niepmann & Schmidt-Eisenlohr, 2017;Schmidt-Eisenlohr, 2013). With the cash in advance payment approach, the importer facilitates a payment or partial payment using his/her local credit line to the exporter before the goods have been produced or shipped (Ahn & Sarmiento, 2019;Ganne, 2018;Schmidt-Eisenlohr, 2013).…”

Section: Trade Financementioning

confidence: 99%

Blockchain technology and trust relationships in trade finance

Kowalski

Lee

Chan

2021

Technological Forecasting and Social Change

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Section: Trade Financementioning

confidence: 99%

Blockchain technology and trust relationships in trade finance

Kowalski

Lee

Chan

2021

Technological Forecasting and Social Change

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“…Defuzzification of these numbers is made by using the same concept in Eq. (27) and depicted in the column of WPM def i . The alternatives can be ordered according to these values: X3 (Letters of credit method) > X1 (Document collection method) > X2 (Open Account method) > X4 (Cash in Advance method).…”

Section: Results Analysismentioning

confidence: 99%

“…Moreover, it paves the way for further payment applications for ecosystem service schemes in various ecosystem contexts and is a valuable alternative source of funding for marine biodiversity conservation. Hwang et al [24] examined factors affecting the significant change in export payment terms in Korea from 1997 to 2015. The study concluded that growing global competitiveness, higher exports of information technology products and intra-firm trade, and developments in information and communication technology would all result in a decline in the share of L/C terms in overall exports over the long run.…”

Section: Literature Review On International Payment Methodsmentioning

confidence: 99%

“…However, this method has the disadvantages of not guaranteeing the seller's interests because the payment depends on the buyer's wishes and slow payment speed. The banks act merely as intermediaries to facilitate payment for a shipment [27].…”

Section: Document Collection Methods (X1)mentioning

confidence: 99%

“…A defuzzification process of SAW def i values as given in Eq. (27). If required, the alternatives can also be ranked in descending order of SAW def i values after a defuzzification operation.…”

Section: Figure 2: the Proposed Research Frameworkmentioning

confidence: 99%

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Spherical Fuzzy WASPAS-based Entropy Objective Weighting for International Payment Method Selection

Nguyen¹,

Dang²,

Nguyen³

et al. 2022

Computers, Materials &Amp; Continua

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In international trade, exporters prefer to receive payments as quickly as possible, and importers want to make payments as late as possible. In this respect, the payment field, an essential condition for trade transactions, also represents the positions of exporters and importers conflict. In addition, there are many cases in which various variables must be considered rather than only one specific variable representatively affecting payment, particularly in the case of import-export Small and Medium-Sized Enterprises (SMEs) from emerging countries. A selection of proper payment methods can be categorized as a Multi-Criteria Decision-Making (MCDM) issue. Therefore, this study aims to propose a novel and efficient Spherical Fuzzy Weighted Aggregated Sum Product Assessment based Entropy Objective Weighting method (SF-EW and WASPAS-SF) to evaluate international payment methods with uncertain information. First, SF-EW model is applied to determine the relative weights of critical factors. Second, international payment method alternatives are prioritized by the WASPAS-SF approach. Five essential factors for four international payment methods are proposed based on experts' opinions and the existing literature. A real-world case study from Vietnamese import-export SMEs is presented to validate the applicability of the proposed framework. The results indicated that "Characteristics of payment method (PA)" had the most significant impact on international payment method selection. In comparison, "Letters of Credit (L/C)" was the most reliable payment method with the highest ranking available to international traders. Furthermore, a sensitivity analysis was performed to examine the validity and robustness of the proposed decision support model. Consequently, this study could contribute to international payment services and in the context of globalization and international trade.

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A two-phased decision-making based grey theory framework for the best choice of payment methods in international trade

Nguyen

2022

Heliyon

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Why did the terms of payment in international trade change so much?

Cited by 4 publications

References 8 publications

Blockchain technology and trust relationships in trade finance

Blockchain technology and trust relationships in trade finance

Spherical Fuzzy WASPAS-based Entropy Objective Weighting for International Payment Method Selection

A two-phased decision-making based grey theory framework for the best choice of payment methods in international trade

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