The Determinant Factor of International Trade: Payment Methods
Chapter from the book:
Erdoğan,
U.
(ed.)
2024.
Current International Trade Applications.
Synopsis
This study examines the most commonly used payment methods in international trade and the use of blockchain technology as a payment tool in foreign trade. Payment methods, which are one of the determining elements of international trade, ensure trust between importers and exporters and play an important role in the complete execution of commercial transactions. In addition to classical methods such as advance payment, cash payment and letters of credit, the potential of blockchain technology, which has attracted attention in recent years, is also discussed in the study. Such technologies have the capacity to reduce risks in global trade by providing transparency, speed and cost advantages. In addition, the factors to be considered in the selection of these payment methods are explained in the study. As a result, choosing the right payment method in international trade plays an important role both in the successful conclusion of trade and in ensuring the financial security and commercial sustainability of the importer and exporter.