When an Exporter Ships Merchandise and Later Bills the Importer

question 82

Multiple Choice

When an exporter ships merchandise and later bills the importer for its value it is using a(n) ________ type of export/import financing.

• A) advance payment
• B) open account
• C) letter of credit
• D) documentary collection

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Definitions:

Fabricating Department

A part of manufacturing where raw materials are transformed into parts or products through processes like cutting, welding, and assembling.

Daily Basis

A period or measure referring to events or processes that occur or are calculated on a day-to-day basis.

Design Department

A division within a company responsible for developing new products or improving existing ones through research, planning, and design.

Labor Constraint

Is a restriction or limit within a production or project environment that pertains to the availability or efficiency of labor.