How Do International and Domestic Practices of Settling Trade Transactions

question 70

Multiple Choice

How do international and domestic practices of settling trade transactions differ?

• A) In an international transaction, a formal promise to pay is required before the buyer can obtain the merchandise.
• B) In an international transaction, the seller usually ships merchandise on an open account.
• C) In a domestic transaction, a draft is used to settle trade transactions.
• D) In an international transaction, the exporter sends a commercial invoice that specifies the amount due and terms of payment to the importer.
• E) In an international transaction, there is more trust between the exporter and the importer than in a domestic transaction.

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Definitions:

McDonaldization

The process by which the principles of the fast-food industry, such as efficiency, calculability, predictability, and control, have come to dominate other sectors of society.

McDonaldization

A term referring to the process by which the principles of the fast-food industry, such as efficiency, calculability, predictability, and control, are coming to dominate more sectors of society and life.

Regimented

Strictly controlled and organized, often with a focus on precise and orderly management or procedure.

Postmodernism

A broad movement that developed in the mid- to late-20th century across philosophy, the arts, architecture, and criticism, marked by a skeptical, relativist attitude toward culture, literature, art, philosophy, history, linguistics, and economics.