Forfaiting Resembles Factoring but Involves Medium- to Long-Term Receivables and Larger

question 22

True/False

Forfaiting resembles factoring but involves medium- to long-term receivables and larger transactions.

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Definitions:

Trade Surplus

Occurs when a country's exports exceed its imports during a specific time period, indicating a positive balance of trade.

Exports

Goods or services sent from one country to another for sale or trade.

Imports

Goods or services brought into one country from another for the purpose of sale or trade.

Exchange Rate Risk

The potential for loss due to fluctuations in the exchange rate between two currencies in international finance.