The Safest Method Available to an Exporter,but That Which Exposes

question 19

Multiple Choice

The safest method available to an exporter,but that which exposes the importer to some risk related to delivery of goods,is called _____.

• A) payment in advance
• B) a commercial letter of credit
• C) a banker's acceptance
• D) a syndicate
• E) a bond rating

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Definitions:

Diseconomies of Scale

The phenomenon where, beyond a certain point, the cost per unit increases as the scale of operations expands.

Firm Size

A measure of a company's scale or magnitude, often estimated by metrics like sales, assets, or the number of employees.

Acquisition

It refers to the process or action by which one company takes over another company, either through purchase of its shares or assets.

Economy of Scale

Economy of Scale refers to the cost advantage that arises with increased output of a product, as fixed costs are spread out over more units of production.