In International Trade, an Exporter Wants to Be Paid Before

question 38

Multiple Choice

In international trade, an exporter wants to be paid before a consignment is shipped. Correspondingly, the importer wants to pay only upon receipt of the consignment. These conflicting preferences of the parties are a manifestation of:

• A)corporate greed.
• B)acculturation.
• C)lack of trust.
• D)cultural insensitivity.
• E)countertrading opportunities.

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Definitions:

Primary Wrongdoers

Individuals or entities directly responsible for a tortious act or violation, distinguished from secondary parties who may also bear liability.

Appointed By President

Refers to individuals who are chosen and assigned roles or positions within the government by the President, often subject to confirmation by the legislature.

Securities Act

A U.S. law enacted in 1933 that requires that investors receive financial and other significant information concerning securities being offered for public sale.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity, including stocks, bonds, and derivatives.