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In the past Korean firms tend to choose L/C contract to avoid credit risk and dishonour of bills. But recently international traders tend to prefer simplified transactions procedures in view of their efficiency. This study deals with a literature review and empirical study on determinative factors in the decision of a payment method. The results of this paper are as follows; Firstly, characteristics of business relations(export experiences, credit risk, payment risk, delivery risk, etc.) and costs and procedures of payment show a statistically significant influence on the decision of each export companies' payment methods. In conclusion export firms regard a cost reduction as one of the most important factor in selecting a payment method in trades. Secondly, this study analyzes variables of decision factors in countries such as China and America. In China characteristics of environments (in particular, a risk related to the government of an import nation) is regarded as most important factor. Chinese economy has become a big emerging market and has expanded trades in the global market. Because of change of trade environment in china, the environment risk factor is regarded as more important factor than others in selecting a payment method. This study is to investigate the main factors in making decisions of payment methods of export firms. There are certain limitations in scope and sizes of samples in this paper. Firstly, as problem of sample selection, sampling size and the number of the samples analyzed are small. Secondly, the lack of available data makes the study limited.