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is very ordinary or it is the first time do business with the others , people shall keep a bit, payment by L/C. Although it’s cost a lot , but it is security. If the customer credit rating is high, then people can choose on collection basis, this to belong to medium one kind, It can save some cost, and also safet, If the customer credit rating is very high, then people can choose remittance way. International trade termsIn the “international chamber of merce piles 2000” ,the incoterms were divide into13 kinds of trade terms for trading parties choice. Each term there are all sorts of characteristics, suitable situation, especially the involved risks, expenses, duties are very difference. We can according to the terms of delivery of different put it into two main categories, symbolic delivery and actual delivery.International trade terms is a very important factor people should consider when they do international budiness. In international trade, the two parties’ obligations is different, so the risks they beared are also different. This derectly influence the pirce. With the development of mercial, gradually formed some certain quotations which closely bined the trade terms and price together. Those quotations were mentioned the obligations of both parties clearly. After a long time of accumulation and practice, they evolved to illustrate this obligation terminology, then called the trade term. It is very useful . First, it definites the freight and insurance are to be borne by which parties . Secondly, it definites trade t the conditions of delivery, each other39。International trade means some activities that people from different countries and exchange their goods and services. Since the parties from different countries, the backgrounds, cultural customs and laws are not the same. People should take the cultural difference into consideration when they do business with others . Because this characteristic, international trade also called world trade. In addition, international trade is done by import trade and export trade two parts, so sometimes it is called import and export trade. Therefore, when choice settlement way, people should consider both advantages and disadvantages, and find a middle way to meet both exporter’s and importer’s benifits to ensure the business be done safely, rapidly and accurately. entrust a export bank collect payments through it’s the branch or facility agent in the import place. It belongs to mercial credit. There are four partys with cllection, principal, remitting bank, drawee, collecting bank. The principal is exporters. Remitting bank is the bank that the exporter entrusted. Collecting bank is a branch of remitting bank or other precatory bank, and the bank is in the importer palace. Drawee, usually is importer. For them, there are close relations between principal and remitting bank, drawee and collecting bank, remitting bank and collecting bank with the collection . Principal and remitting bank is principalagent relationship. However, it does not exist any legal relationship between collecting bank and drawee. the drawee pay the payment according to the contract. So, the exporter whether can get the payment, totally depends on credit of imports. Letter of CreditL/C is a mon kind settlement in interntional trade. The bank credit is inlvoed in this kind of settlement. Say simply, the bank pay a role as a guarantor to guarantee the benefits of both parties. Its emergence has significant meaning, not only solved some distrust of contradictions between buyer and seller at some extent, but also can make both of parties get bank financing convenience during the process of using L/Ct settlement, It’s facilitating the development of international trade. Therefore, this settlement way in international trade has been used very widel, It’s popular with all pany i