Suppose you are exporting goods to a buyer. Which payment method is the safest for you to carry out the transaction?

Answers will vary. Cash in advance, a method of payment where the importer pays the full the amount in advance to the exporter, is the safest method for exporters but the least safe for importers. When exporters receive payment in advance, they avoid credit risk but create an unbalanced value flow. That is, the exporter or seller has been paid, but the importer, or the buyer, runs the risk that the goods it paid for will not be sent or will be damaged or lost in transit. Wire transfers, credit cards, and escrow services are the most common methods for paying cash in advance.
The section "International Banking" on page 366 explains cash in advance. Students can use this section to make their own interpretation and answer this question.