Scenario: Wang's Techno Toys

question 181

Multiple Choice

Scenario: Wang's Techno Toys
Ann Wang has been successful in the domestic market selling high-tech toy products. But facing stiff competition at home, Ann has entered international markets by direct exporting.
-Which of these is NOT an export/import financing method that Ann likely has at her disposal?

• A) Buyback
• B) Letter of credit
• C) Advance payment
• D) Documentary collection

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Definitions:

Equilibrium Quantity

The amount of products or services available matches the amount desired by consumers at the current market rate.

Price Ceilings

Government-imposed limits on how high prices for essential goods or services can be, intended to protect consumers from price gouging during shortages or crises.

Quantity Supplied

The amount of a product that producers are willing and able to sell at a particular price over a given period of time.

Quantity Demanded

The complete volume of a merchandise or service buyers intend to acquire at a determined price.