Chapter 12 Financing Contents Summary…………………………………………………………………………2 Outline…………………………………………………………………………3 Questions ………………………………………………………………………13 Vocabulary………………………………………………………………………15 Part 1 Summary Part A Financing foreign trade: introduce the kinds of documents .trade terms, financing arrangements used in international sales that must be known. Part B and C This part mainly discusses the function of the bills of lading and the bills of exchange. They are the two important financing and payment instruments used in international trade. This part also introduce the law governing bills of exchange and many types of bills of exchange, time and sight bills. Part D This part gives us a definition of the promissory note. It also defines the different patties to bills of exchange and promissory notes. It lists a lot of examples of typical promissory notes. Part E To trade to run smoothly, a bill or note have a lot of things to bill or note must contain a promise or an order to pay that is unconditional. 2. Define sum of money or monetary unit of account. 3. payable on demand or at a definite time. 4. signed by the maker or drawer. Part F To satisfy commercial, bills and notes have to be freely transferable. This part discuss 1 the meaning of assignment 2 the definition and many kinds of negotiation .4 The role of banks in collecting and paying negotiable Limitations on the excuses that drawers and makers can use to avoid paying off a bill or note. 6Liabilities of makers, drawers, drawees endorsers, and accommodation parties Part G This part mainly introduces the letters of credit. For example, how to apply for a letter of credit, and the governing law. Part H This part mainly introduces 1 private sources of capital 2 governmental sources of capital 3 regional and international development agencies. Part 2 Outline Chapte