Arranging Payments for the Price of Goods Bought in an International Essay

Arranging Payments for the Price of Goods Bought in an International Sale is by the Use of a Documentary Credit - Essay Example 1.1 Definition and Description of Credit Documents a. Documentary Credits For international transactions, buyers and sellers approach their banks, which will in turn undertake a written agreement for the buyer that promises to pay a certain currency value in favor of the seller on the condition that all the requirements known as terms and conditions are met. Evidence of goods delivered by the seller should be in the form of documents defined in the agreements. The buyer’s bank communicates and deals directly 24 Alejandro Jara and Patrick Low, et. al., World Trade Report 2011. World Trade Organization. p. 24. with the seller’s bank. A credit line is assured by the banks prior to release of goods from the seller. Payments are actually made only after documents are received by the buyer’s bank. Therefore documents such as Letters of Credit are very important for international transactions. Documentary credits may be standard or special depending on what will meet th e needs of the transacting parties—buyer, seller, bank of the buyer, and bank of the seller. â€Å"Standard documentary credits can be either revocable (may be cancelled by the buyer), or irrevocable†¦confirmed (a second bank, in addition to the buyer’s bank, guarantees payment) or unconfirmed (payment guaranteed only by the issuing bank).†17 Protection by documentary credits does not include an assurance that the goods are shipped according to understanding. Disagreements can result out of dissatisfaction. Complaints may arise. But the buyer and seller would have to settle the problem on their own. Banks base their decisions on just the documents and the terms and conditions therein. Those documents identify four parties, namely, â€Å"applicant, beneficiary, issuing bank, and advising bank† although in the business community, they are known as the â€Å"buyer, seller, buyer’s bank and seller’s bank†.18 The International Chamber of Commerce had already prepared the Uniform Customs and 17 Edward G. Hinkelman, A Short Course in International Payments: How to Use Letters of Credit, D/P and D/A, Prepayment, Credit, and Cyber Payments in International Transactions. California, USA, World Trade Press, 2003, p. 50. 18 Hinkelman, A Short Course in International Payments: How to Use Letters of Credit, D/P and D/A, Prepayment, Credit, and Cyber Payments in International Transactions. p. 52. Practice (UCP) for Documentary Credits. The UCP recognizes that there are different types of documentary credits, namely, Standby Credits, Revolving Credits, Transferrable Credits, back-to-back credits, revocable and irrevocable, confirmed and unconfirmed. And the definition of documentary credits according to UCP is any arrangement, however named or described, whereby a bank (the issuing bank) acting at the request and in accordance with the instructions of a customer (the applicant for the credit) (i) is to make payment to or t o the order of a third party (the beneficiary) or is to pay or accept or negotiate bills of exchange (drafts) drawn by the beneficiary or (ii) authorises another bank to effect such payment, or to pay, accept or negotiate such bills of exchange against stipulated documents, provided that the terms and conditions of the credit are complied with (Art. 2).4 However, Dr. Zsuzsanna Toth identified documentary credi

Environment Pollution Essay Example | Topics and Well Written Essays - 3000 words

Environment Pollution - Essay Example The Environment Protection Agency promotes the construction of green buildings through which we can understand that this stream of engineering offers a great advantage to environment. A research paper on Capacity planning for waste management systems tells us about the application of engineering concepts to solid waste management. By studying different research papers we can understand the application of engineering principles to these areas of responsibilities in order to regulate them and make the environment pollution free. In recent times the climate has undergone drastic changes. Every time we mishandle the natural resources or create imbalance without thinking about tomorrow and use them without a proper protocol or procedure we modify the most important natural phenomena by affecting the climate. Each and every non environmental friendly procedure or product has a direct or indirect impact on the climate which results in drastic changes in timing of seasons. Of these the rocketing emissions of green house gases are considered to be the main culprit. The green house gases in the earth's atmosphere capture the heat increase in green house gases cause to rise in earth's temperature which ultimately results in rise in sea level and change in weather patterns. Welsh Assembly Government has taken numerous steps in order to stabilize the emissions of green house gases and work together with the UK government to develop various proposals to the climate change bill. WAG responds to the internal changes and proposes long term plans to solve the problem. It aims to cut down carbon dioxide emissions to 60% by 2050, maintain reliable energy supplies, to promote competitive market and to ensure that each and every home is adequately heated. It has also been proven that the measures that were set for climate change program in 2006 have been successfully implemented by the UK government. A study on all the potential impacts of climate change on different sectors in Wales is been conducted which shows the areas of action. Developed strong evidences against the impact of climate change in different sectors in Wales and develop tools and skills which would ultimately result in lessening the impact. Construction of houses and administrative buildings using sophisticated technologies so that there would be less usage of heating systems and electricity is very much relevant to my engineering discipline. Ex: Green buildings increase the energy efficiency by using modern technologies. The UK climate change Bill, UK Government's F-Gasesand Ozone Depleting Substances consultation papers, Carbon Reduction Commitment announced in the UK Energy White Paper 2007, European Union (EU) Emission Trading Scheme and the powers passed to Welsh ministers make the assembly government to offer their extended support to public authorities on climate change policies and their adaption and it also provides them with the authority to taking necessary action if a public body fails to do so. Our engineering disci