PART ONE 1
1 International trade: introductory overview 3

PART TWO 13
2 The foreign exchange market 15
3 Spot rates and forward rates 39
4 Close-outs and extensions of forward contracts 47
5 Foreign currency options/pure options 53
6 Alternative hedging strategies for exporters 65
7 Overview of management of foreign currency exposure 69
8 Foreign currency translation exposure and foreign currency
economic exposure 81
9 Methods of international settlement through banks 101

PART THREE 117
10 Transport documents used in international trade 119
11 Documents other than transport documents 129
12 Incoterms 137
13 An overview of terms of payment 155
14 Open account terms 161
15 Documentary collections 171
16 Documentary credits 191

PART FOUR 213
17 Short-term finance for exports 215
18 Medium- and long-term finance for exports 227
19 Non-financial services for exporters 237
20 Bonds, stand-by letters of credit and countertrade 251

PART FIVE 277
21 Inward documentary collections 279
22 Documentary credits for imports 295
23 Transferable letters of credit and back-to-back letters of credit 305

APPENDICES 313

1 Electronic commerce (e-commerce) 315
2 Correspondent banking and competition between banks 321
3 Uniform rules for collections, ICC 522, 325
4 Uniform Customs and Practice for Documentary Credits 337
5 Uniform Rules for Bank-to-Bank Reimbursements under
Documentary Credits 367

Index 379

An excellent guide for all students and practitioners who seek to acquire a sound understanding of international trade finance including foreign exchange and support services for exporters, importers and merchants.

The book is in five parts: the first sets out the rationale for the development and growth of international trade. Part two analyses the practical applications of hedging techniques and also foreign exchange and settlement procedures. The third assesses the role of documents used in international trade. Part four examines the implications of the various financial and non-financial services from the point of view of the exporters. The final part analyses documentary credits from the applicant's point of view, and then evaluates the benefits and drawbacks of various specialist forms of documentary credit.