What Is the Primary Risk an Exporter Faces with Documentary

question 97

Multiple Choice

What is the primary risk an exporter faces with documentary collection?

• A) bank changing terms
• B) importer defaulting
• C) issuing bank defaulting
• D) importer failing to pay account balance

---

Definitions:

Export Trading Companies

Firms that specialize in international trade, providing services such as market research, distribution, logistics, and financial support to exporters.

Revenue Tariff

A revenue tariff is a tax on imports primarily designed to generate income for the government without necessarily protecting domestic industries.

Competitively Priced

Pricing goods or services in a manner that is attractive to customers when compared to competitors, usually by being lower or offering more value.

Global Business Strategy

A global business strategy involves planning and conducting transactions across international borders to exploit global market opportunities and compete on a worldwide scale.