Trade-Card will soon replace letters of Credit

Trade-Card will soon replace letters of Credit

1 Many people claim that a “Trade-Card will soon replace letters of Credit.” What is this product, and why do people think it has such a bright future? Do you agree?

The Letter of Credit is an assurance from the purchaser’s bank, which asserts that the payment of a purchaser’s accountability will be accepted in the correct amount and promptly. Letter of Credit exists in different forms, such as the standby letter of credit. Businesses need a letter of credit when they are uncertain about risk, especially when the buyer is seen to have high risks of non-payment, mostly when they are new in the business venture. People think that it has a future because, with it, the ability to grow is minimized, especially when the rivals are providing open terms with the use of Trade Card as a source of finance (Abdullah, 2017).

2 You are the prime minister of a new African nation that is oil-rich. Your currency is Zambia (made up name). Would you choose to let your currency float, be pegged, or do something else? Provide reasons for doing so.

The United States dollar status as an international reserve currency makes several nations to peg. Being the Prime Minister of a new African country, which is rich in oil and intends to export it, I would choose to let my currency be pegged. This is from an idea that nations that rely heavily on the financial segment peg their currencies to the dollar. Pegging my nation’s currency to the U.S. dollar aims to keep its value low and allow the nation’s exports to be competitively priced. Failure to make the decision of pegging the currency will promote anti-competitiveness in the export business.

3 What do you believe are the advantages of conducting international trade using electronic document transmissions, such as EDI, Bolero, or Trade Card? Are there any obvious disadvantages?

Conducting international business through the use of electronic document transmissions, including Trade Card, Bolero, and EDI, have several benefits. Some of the notable advantages include the elimination of information entry mistakes, low office overheads, minimized paper consumption, and increasing revenue through the expansion of the geographical market. Therefore, electronic document transmission continually proves its principal business value by improving speed, lowering costs, especially at the strategic business level (Pearlson, Saunders & Galletta, 2019).

4 You are a small company in the auto industry that is trying to get more business with Korean automakers in South Korea. You win a contract and will be shipping transmission components to Hyundai in South Korea regularly. You need to stay competitive and provide quality parts. What marine insurance should you choose, and why?

Marine and boat insurance are the same, but marine insurance handles commercial vessels while regular boat insurance is for recreational boaters. Boat insurance assists in covering losses in case there is an accident or properties are damaged depending on the type of policy purchased. The property damage policy in this scenario will cover damages in case of an accident.

5 Are you adventurous? Would you consider taking a passenger cruise on a cargo liner? Why or why not? What are the advantages and disadvantages as you see them?

Yes, very well, I am adventurous. During the marine voyage, I consider taking a passenger cruise duce for some reason. Some of the ideas put into considerations include its smart high tech, one can dive deep in a discrete destination, and the amenities are amazing, among other reasons. The pros and cons of passenger cruise are important in determining the cruise one needs. The advantages include comfort, amenities offered are amazing (Bassam et al., 2017). However, it is costly to consider taking a passenger cruise.

6 As a florist in Toledo, if you wanted to ship fresh flowers economically from the Netherlands (largest exporter in the world) to Toledo for a business conference next week – how would you have your cargo packaged? What type of aircraft would you employ? What route would you take (delivery in Detroit, delivery in Toledo, etc.)? Provide reasons for each answer.

There are some requirements when packaging a flower package. There is a need to secure the flowers inside the shipping container to avoid flowers being shipped in the wrong direction. Also, there is a need to protect the flowers from extreme temperatures to the recipient location because the flowers are perishable. The flower exporting firms will transport the flowers via planes to make sure they reach the recipient fast. Flower delivery services is done in Detroit (Binelli, 2013).

7 Do a little research and project future growth – truck transport or rail transport in the next 15 years in the U.S. Why? Would you invest in companies in these industries?

Over the years, several segments have been near shoring, and those that are have vastly different reasons. High tech firms are continually embracing the move as an approach of bringing assembly and manufacturing close to demand to minimize total landed costs in order to reduce supply chain disruptions and also the intellectual property risks. The emerging technologies including autonomous cars there are anticipated changes in the transport sector in the nearby future (Le Vine, Zolfaghari & Polak, 2015). Due to the changes, the transport sector is unpredictable, and thus I would not invest in such firms now until I have done more research to determine their viability.