Payments made between Thailand and Africa for international trade | |
| Author | Kuruvilla, Mathew |
| Call Number | AIT Proj. no.SM-10-10 |
| Subject(s) | International trade--Thailand--Africa Payment--Thailand |
| Note | A project study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | Whenever international trade is set in motion, the common practice globally is; there are only 2 financial institutions involved in the engagement. The Buyers bank and the Sellers bank. But what is standard practice isn’t the case in a Thailand - Africa cross continental trade, due to the fact that the mode of payment is carried out with the involvement of a 3rd party broker (Financial institutions). In international trade, the most popular mode of payment is the Letter of Credit (LC). A LC is basically a document of guarantee for payment from the Buyers bank, given to the Sellers bank. It basically states that on the delivery of the goods from the seller to the buyer, the Buyers bank will honor the payment to be made from the buyer to the seller. Thus, it is pertinent to note that, in this transaction, there are only 2 parties involved, the Buyers bank and the Sellers bank. With regard to trad e between Thailand and Africa, there is an involvement of a 3rd party broker (Financial Institution from the US, UK, Australia, New Zealand, Hong Kong, Singapore, etc). Statistics show that Thailand’s Exports to Africa for the year 2009 have been valued at 6.3 Billion US Dollars. If we assume that the brokerage charges/ confirming charges, charged by the foreign financial institutions are 1 percent1, then the value of the brokerage for the year 2009 will be 6.3 million USD. The purpose of this study is to identify the possibilities of change in the current mode of payment between Thailand and Africa and encouraging direct payment between Thailand and Africa. Currently, countries like India and China trade directly with Africa, due to direct links in their financial infrastructure. It is therefore pertinent that Thailand does the same. |
| Year | 2010 |
| Corresponding Series Added Entry | |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Winai Wongsurawat |
| Examination Committee(s) | Amoussou-Guenou, Roland;Zimmermann, Willi |
| Degree | Project (M.B.A.) - Asian Institute of Technology, 2010 |