Commercial Credit And Bank Credit, The Combination Of Clearing The Way The Pros And Cons Of Analysis And Estimates Of The Relative Position Of The Queuing Analysis

The International settlement is the most important part of international trade and the main way that clears the debts across countries. With the development of international trade, finance, communication, the ways of settlement is developed correspondently. Nowadays, about 60% of the international trade of our country still adopts the letter of credit. However, as the buyers'market power becomes increasingly stronger, we must change the current means of payment according to our credit and financial system. Obviously, the compound settlement in which the commercial credit combines with credit of the bank is a fairly good choice. Because it meets the need of buyer's market, guarantees the safety of clearing the debts and controls the expenses at the same time.This article probes into the operation procedure and scope of application of three concrete forms of compound settlement. By studying typical cases and comparing with single settlement method, this paper analyzes the pros and cons of compound settlement. Moreover, it applies the new ranking method based on relative position estimate to the comparison of five international settlement methods. To be specific, it manipulates three dummy variables to make a comparison between every two methods of five. Then by using the analytic approach of threshold value, it gives a relative position of the five methods.Finally,based on the qualitative and quantitative analyses, we come to the conclusion that the compound settlement method is a reasonable and suitable choice of international settlement. Because it considered the following three objectives synthetically-clearing the debts safely and on time, expanding export and reducing cost. However, making the operating become more complicated, it asks the exporter to pay close attention to every detail of operating and watch out for potential risks.