In the Context of Methods of Payment in International Business

question 36

Multiple Choice

In the context of methods of payment in international business, unlike cash in advance, a commercial letter of credit:

• A) is a safer method of payment for an exporter.
• B) is not a safe method of payment for an importer.
• C) provides a level of protection to both the exporter and the importer.
• D) does not transfer ownership of goods to an importer.

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Definitions:

Inefficiencies

Situations or processes that waste resources, resulting in lower productivity or effectiveness than potentially achievable.

Public Choice Theory

The economic analysis of government decision making, politics, and elections.

Government Decision Making

The process by which officials of a government choose options and take actions affecting the country or a section of its population.

Collective Economics

Practices and principles that focus on the management and optimization of resources for the benefit of a community or group rather than individuals.