In the Field of Foreign Trade, the Most Common Form

question 27

Multiple Choice

In the field of foreign trade, the most common form of credit instrument is the:

• A)commercial loan
• B)trust receipt
• C)sight draft
• D)time draft
• E)none of the above

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Definitions:

Spreading

The act of extending or distributing something over a wider area or among a larger number of people.

Overhead

Fixed costs that are not directly tied to production levels, such as rent, utilities, and administrative expenses, affecting a company's profitability.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.

Shut Down

A short-term decision by a firm to cease operations temporarily due to unfavorable market conditions.