Why Is Credit Risk in International Commerce Magnified

question 29

Multiple Choice

Why is credit risk in international commerce magnified?

• A)Because of exchange rate fluctuations
• B)Because of the volatility of global interest rates
• C)Because exporters often have limited information about importers
• D)Because of tariffs and quotas on international trade

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Definitions:

Oral Reprimands

Verbal admonishments or criticisms given to correct or discipline someone's behavior.

Nonverbal Punishers

Non-spoken methods used to discourage or suppress certain behaviors, often through negative body language or facial expressions.

Punishment

A consequence applied with the intent of reducing or eliminating an undesired behavior.

Employee Initiative

The ability and willingness of employees to take action and make decisions without explicit instruction or prompting from management.