Ms Sandra is an entrepreneur and just getting into the export business. She has just received an export order from the United States. Please advise her on the payment modes and the suitability of a particular method of payment (advance payment, L/C, documentary collection (BoE) or open account) based on typical parametres. Please justify your advice and provide Sandra with a flowchart of payment and goods movement.

Sure, here are the four main methods of payment in international trade:

1. Advance Payment: This is the most secure method of trading for exporters, as the payment is sent before the goods are shipped. However, it's also the least attractive option for buyers, as they have to trust that the goods will be delivered after payment.

2. Letter of Credit (L/C): This is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the L/C have been met. It's a very secure method of payment for both parties.

3. Documentary Collection (Bill of Exchange, BoE): This is a payment method where an exporter entrusts the collection of a payment to the remitting bank (exporter's bank), which sends documents to a collecting bank (importer's bank), along with instructions for payment. The importer's bank then acts in accordance with the instructions and either arranges for payment to the exporter's bank or returns the documents.

4. Open Account: This is a payment method where the goods are shipped and delivered before payment is due. This is the most advantageous option for the importer in terms of cash flow and cost, but it's also the most risky for the exporter.

Based on typical parameters, the Letter of Credit (L/C) is often the most suitable method of payment in international trade. It provides a balanced level of security for both the exporter and the importer. The exporter is assured of payment as long as they meet the terms and conditions of the L/C, and the importer is assured that payment will only be made when these terms and conditions are met.

Here is a flowchart of payment and goods movement:

1. The buyer and seller agree on a purchase, and the seller requires a Letter of Credit for payment.
2. The buyer applies for a Letter of Credit from their bank.
3. The buyer's bank approves the Letter of Credit and sends it to the seller's bank.
4. The seller's bank verifies the Letter of Credit and notifies the seller.
5. The seller ships the goods to the buyer.
6. The seller presents the shipping documents to their bank.
7. The seller's bank checks the documents against the Letter of Credit.
8. If the documents comply, the seller's bank requests payment from the buyer's bank.
9. The buyer's bank makes payment to the seller's bank.
10. The seller's bank makes payment to the seller.
11. The buyer's bank sends the documents to the buyer.
12. The buyer uses the documents to claim the goods from the carrier.