chapter  17
32 Pages

Pricing strategies: Countertrade and terms of sale/payment

Finally, the chapter ends with a review of payment methods. The different payment methods involve a certain degree of financing and risk. It is thus critical to specify the timing and means of payment that are satisfactory to both parties. A misunderstanding regarding delivery terms may cause an exporter to become responsible for unintended shipping costs. To make the matter worse, by unknowingly failing to meet contractual obligations, the exporter may not be able to collect payment. While certain safeguards are necessary, they should not be so cumbersome or costly as to deter business.