The Combination of a Letter of Credit, a Sight Draft

question 6

Multiple Choice

The combination of a letter of credit, a sight draft, and an order bill of lading protect both parties in international transactions from which of the following?

• A) the risk of noncompletion
• B) the risk of foreign exchange risk (when combined with a various hedging techniques)
• C) the risk that financing will not be available due to foreign exchange risk
• D) All of these risks are reduced when using these trade implements.

Understand the evolution of organizational definitions in the context of globalization.

Recognize cultural orientations (collectivism, individualism, masculinity, femininity) and their impact on business and management practices.

Appreciate the importance of managing diversity within organizations to remain competitive.

Understand the implications of high and low uncertainty avoidance cultures on business practices.

---

Definitions:

Influence Analysis

The examination of factors or individuals that have the power to affect outcomes or decisions within a particular context or system.

Exception Reporting

A management tool that involves reporting only when actual performance deviates significantly from planned or expected performance, focusing management attention on important discrepancies.

Technological Advances

The development and application of new technologies, leading to improvements in efficiency, capabilities, and societal impact.

Legislation

The creation and enactment of laws by a governing body or legislative authority.