Which of the Following Financing Methods Would Be Used by an Exporter

question 69

Multiple Choice

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?

• A)letter of credit
• B)cash in advance
• C)sales on open account
• D)barter
• E)arrival draft

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Definitions:

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.

Industry Concentration

A measure of the extent to which a small number of firms dominate the total production, sales, or market share in an industry.

Elastic

A measure in economics indicating how much the demand or supply of a good changes in response to a change in price.

Marginal Revenue

The extra revenue gained by selling an additional unit of a product or service.