Study On International Settlement Costs Of Import And Export Trade

With the integration of the global economy, the international trade between China and other countries has become more and more frequent. International trade costs are deemed to be the main obstacle to economic globalization. So it is very necessary to solve this problem. International trade costs mainly consist of the cost of policy, transportation, language, information, and other performance costs. Although the cost of international settlement is only a small share of the entire costs, as the last link of international trade, international settlement is the key to the success of international trade.In order to furtherstudy. the research background and purpose as well as the current state and future trends home and abroad is firstly introduced by the author; and then the relevant literatures about risks and costs of international settlement are enerally summarized. Secondly, basic concepts and methods of international settlement are defined for analyzing the cost composition and influence factors of international settlement costs.As for composition and influence factors of the international settlement costs, it mainly consists of two parts, one is calculatable. suach as currency exchange costs and bank commission charge, the othere is unpredictable, including costs of settlement time and risks, among which, the currency exchange costs and bank commission charge can be calculated. The influence factors of international settlement costs are analyzed macroscopically and microscopically, including country risks, currency risks, market quotation, client credit, etc. Furthermore, the study on two practical cases of SZ Company to testify the cost composition and influence factors of international settlement costs is given. The SZ-MK-01 case focuses on the cost composition and influence factors of direct-exporting project, and finds out that the calculated international settlement costs are about7‰ of the contract value, including currency exchange cost and bank commission charge. There are other unpredictable costs, such as costs of settlement time and settlement risks. The SZ-ZT-01 case focuses on international settlement costs of "cooperated" project. The cross-border Yuan is chosen as the settlement currency to save currency exchange cost and bank commission charge. But unpredictable costs of settlement still occur because of settlement method, as well as costs of settlement risks. In this case, international settlement costs shall be controlled by reasonable settlement currency and method, according to different influence factors of different trades.It is found that international settlement costs have macroscopic and microscopic influence factors, such as country risks, currency risks, market quotation, client credit, etc. International settlement costs mainly consist of currency exchange costs, bank commission charge and costs of settlement time and risks. Although bank commission charge can be calculated, the costs of currency exchange, settlement time and risks are important share of international settlement costs, and are non-negligible. Most optimistic international settlement currency and method shall be chosen according to the influence factors, in order to control the dominant charges as well as recessive costs.