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1、IntroductiontoInternationalSettlementInternationalpolitical,economicandculturalexchangeinevitablyleadstocreditsanddebtsowedbyonecountrytoanother.Theinternationalsettlementinvolvesbothtangibleandintangibletrades,foreigninvestments,fundsborrowedfromorlenttoothercountriesand
2、soforth.Tobemorespecific,internationalpaymentsandsettlementscanalsobenecessaryfinancialactivitiesrenderedfromcommercialpayments,paymentsfortheservicesrendered,paymentsbetweengovernments,andthetransferoffundsamongcountries.1.1DefinitionInternationalpaymentsandsettlementsar
3、efinancialactivitiesconductedamongdifferentcountriesinwhicheitherpaymentsareeffectedorfundsaretransferredfromonecountrytoanotherforthepurposeofsettlingaccounts,debts,claims,etc.1.2TypesofInternationalSettlementUsuallyinternationalsettlementisdividedintothreebroadcategorie
4、s:remittance,collectionandletterofcredit.Negotiableinstruments,however,waysofinternationalsettlementanddocumentsusedintheinternationalsettlementsometimesconstitutetheframeworkofinternationalsettlement.Forexample,thefollowingpaymenttermscanbereadinthesalescontracts.(1)Thes
5、upplieragreesthatthebuyerwilleffectpaymentsunderthetermofT/TagainstreceiptofB/Lbyfax.(2)HongKongsuppliersagreethatthebuyerwilleffectpaymentsunderthetermofCAD(CashagainstDocuments).(3)Onlyincaseofnewsuppliersandfirstordertothem,thebuyermightagreetoeffectpaymentsunderL/Cter
6、ms.TheL/Cchargesonthebuyer'ssidewillbebornbythebuyerandtheL/Cchargesonsupplier'ssidewillbebornbythesupplier.TheBillofLadingismadeouttoorderandnotifythebuyer.(4)IncasethatthesupplierstillinsistonL/Ctermsevenafterthefirstorder,thesupplieragreetotakeoverallL/Cchargesonhimasw
7、ellasthebuyer'sside.InthosecaseswerequestaBillofLading.1.3HistoryandDevelopmentofInternationalSettlementTracingbackthehistoryofinternationalsettlement,themediumofexchangeoriginatedfromcoins.Lateron,commercialdraftsandothercreditinstrumentsemergedandbecamepopulartomeetthen
8、eedsoftheconstantlyincreasingbusinessactivitiesinbothgeographicalregionsandvolumeoftheinternatio