Research On Exposures Of Payment By Letter Of Credit Under The Electronic Commerce Environment

Letter of credit is one of the most important modes of international payment. With bank credit, it enjoys the reputation for "life blood" of international trade, which is especially much prefered by the Chinese exporting enterprises. However, its shortcomings, such as slow speed of the operating process, the high expense and frequent refusal of paying money because of discrepancies and so on, makes the reduction of the utilization ratio in the international trade year by year. Along with electronic commerce, electronic letter of credit appears. It shoulders the task of getting rid of as many shortcomings of traditional letter of credit as possible. But electronic letter of credit is only the combination of the traditional L/C and electron. It is certainly impossible for the beneficiary to guarantee absolutely safe payment. This study has both practical significance and theoretical value.This dissertation is divided into six parts. The first chapter is about some concepts and theories on L/C and exposures. The second chapter studies the impact of e-commerce on international payment. E-commerce has changed the traditional mode of letters of credit, which makes electronic credit emerge. There are many similarities and differences between traditional and electronic credit. However, E-credit is developing in the direction of reforming many shortcomings of traditional letters of credit; The third chapter deals with the necessity and feasibility of China' s realization of electronic letters of credit, which proves the value of this paper; Chapter Four and Five are the focus of this paper. The exposures of payment by L/C and their causes are analyzed from the micro-angle of view. Besides the inherent insecurity of e-commerce environment, exposures are also made by the parties of L/C: applicant, relevant banks and beneficiary himself. These exposures are mainly caused by LC theoretical and operational shortcomings, beneficiary' s asymmetric information, the insufficient theory and practice of electronic credit and its unsoundness of laws and regulations; Tn Chapter Six measures to prevent the exposures are put forward combined with Chapter 4, as well as other preventive measures, such as: integration of credit and other means of settlement, the use of standby letters of credit,...