Model for Choosing a Payment Term in Export Business Based on Relative Preference Estimation

Introduction　　Multiobjectivedecision makinghasbeenafocusofresearchesondecision makingtheoryforalongtime .Accordingtothedifferenceinthewayforadecision makerto providepreferenceinformation ,thesolutionssofarproposedcanbeclassifiedintothefollowingthreekind…

Model for Choosing a Payment Term in Export Business Based on Relative Preference Estimation

To avoid payment risks, 5 widely used payment terms in international trade practice are analyzed quantitatively. The final choice of a payment term in export business is a representation of the transactional 'Win-Win' principle as well as moderate compromises made by importer and exporter between self-protection and acceptability to the other party. The initial assessment is conducted first on decision-makers preference and understanding of possible results of each objective. Then, aggregated preference relations are obtained by weighting each objective as per its relative importance and calculating preference indicators. Finally, ranking is made according to the preference indicators.