The case study outlines how HSBC partners in international trade for long years. The case also describe international trade its benefits and opportunities and payment methods. Open account and documentary credits are described describing how documentary credit works. Hope you will enjoy learning.

1. Partners in international trade
-A HSBC case study
TEAM – A
ASAD
SHAWAN

2. Roads…….
Dhaka City
Meena Bazar,
Retail Grocery
Outlet…..Dhaka
H&M Store….
Downtown
Montreal

3. Toyota
Made in
Japan
Made in
Bangladesh

5. Presentation overview
 HSBC
 International trade
 Benefits and challenges of
international trade
 International trade payment methods
 Open account and documentary
credits
 HSBC trade services
 Export and import financing
 EDI and hexagon

6. HSBC-
Hong Kong Shanghai Banking Corporation
History of HSBC
• Founder:- SIR THOMAS
SUTHERLAND
• Established in- 1967
• Over 80 territories
• 55 million customers
• 267,000 employees
• 7th largest bank in the
world

7. International Trade
 Exchange of capital, goods, and
services between the countries.
 It simply means import and
export
 Export means selling goods and
services out of the country
 Import means goods and
services flowing into the country

8. Growth in international trade
(1950- 2008)

9. Opportunity ahead
of international
trade
Longer
product
lifecycle
Product
development
Opportunity to
specialize
Easier cash-flow
managementBranding
Increased
revenues
Economy of
scale

10. Challenges
of
international
trade
Political
issues
Currency
prices
Cultural
issues
Delivery
and
transit
Payments
Protocols

11. International trade: methods of payment
Common methods of
payment are-
 Open account
 Documentary
collection
 Documentary credit

12. Open account and documentary credit
Open account
 The goods & documents,
are shipped directly to the
importer.
 The importer agrees to pay
usually in 30 to 90 days.
 There is risk of collection
 Government-guarantee,
export credit insurance etc.
Make it competitive.
Documentary credit
 Documentary credit means
the same thing than “letter
of credit”.
 The process begins when
the exporter and importer
agree on a sales contract.
 The importer’s and
exporter’s banks work as
intermediaries.
 Collection is secured.

13. HSBC- partnering international trade
A. HSBC trade
services
B. Import and export
financing
C. Electronic data
interchange

14. HSBC- partnering international trade
A. Trade services
 Electronic document
delivery support
 Specialist services and
tailored solutions for
international traders
 Global reach and local
knowledge
 Support with documentary
procedures

15. HSBC- partnering international trade
B. Export and import financing
 Arranging payment to
the satisfaction of
both importer and
exporter
 Insured export
finance facility
 Documentary credit

17. HSBC- partnering international trade
C. EDI- Electronic data interchange
 Two or more companies exchange
information electronically.
 Computers can process the data
automatically.
 The electronic banking services
system within the HSBC Group is
known as Hexagon
 Hexagon includes trade services,
cash management, payments and
information reporting.
 It benefits to HSBC’s customer
supply chain system.

19. Thank You
for your co-op