INTERNATIONAL PAYMENT METHOD SELECTION IN IMPORT-EXPORT MANAGEMENT IN ECONOMIC UNCERTAINTY PERIODS: ANALYSIS WITHIN THE SCOPE OF MCDM

Increasing economic uncertainties at the global level further increase the risks encountered in international trade transactions and force companies to make more cautious decisions regarding payment methods. International payment methods used in import and export processes differ according to many factors, such as trust between the parties, cost, transaction time, and ease of transaction. The aim of this study is to determine the most appropriate payment method for companies engaged in foreign trade during periods of economic uncertainty, to minimize possible payment risks in the relevant processes, and to compare payment methods within the scope of other relevant functions. In the study, four basic payment methods (advance payment, cash against goods, cash against documents, and letter of credit) were evaluated in line with five basic criteria (reliability, transaction burden, transaction cost, speed, and convenience). In the analysis done using the Analytical Hierarchy Process method from the Multi-Criteria Decision Making (MCDM) approaches, expert opinions gathered through interviews were used. The findings obtained show that the letter of credit payment method, which finances both the exporter and the importer, stands out as the most appropriate option in periods of uncertainty with its high level of reliability. The study also evaluated the findings related to other payment methods other than the letter of credit payment method considering the relevant criteria. Therefore, the study aims to contribute to the international trade companies making more rational and strategic decisions in the selection of payment methods and to shed light on the field researchers with the findings obtained in the light of multi-criteria analysis.