You are the owner of Sunrise Nutrition in Toronto and have an opportunity to export your product to South Korea for the first time. Healthy Life is a company in South Korea that is interested in buying Sunrise products for the first time. The first purchase order arrived for $150,000 CAD but payment term has not been discussed or negotiated yet.
1) What is your first proposed payment option?
2) Will you accept an open account payment for this transaction?
3) Healthy life is not accepting an advance payment and is ready to walk away from this business. What would you propose?
4) During your payment negotiation, would you evaluate the overall economy, politics, and banking system in South Korea? How does it affect your decision?
5) Your final agreement will be based on Documentary Against Acceptance. Complete the bill of exchange in the next page:
