Which of the Following Is the First Step in a Typical

question 39

Multiple Choice

Which of the following is the first step in a typical international trade transaction?

• A)The exporter agrees to ship under a letter of credit and specifies relevant information such as prices and delivery terms.
• B)The importer applies to a trusted third party (usually a bank)for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy.
• C)The importer places an order with the exporter and asks the exporter if he would be willing to ship under a letter of credit.
• D)The exporter ships the goods to the importer on a common carrier.An official of the carrier gives the exporter a bill of lading.
• E)The trusted third party (usually a bank)issues a letter of credit in the importer's favor and sends it to the exporter's bank.

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Definitions:

Throughput Time

The complete duration needed to create a product, starting from the commencement of its production until it's finished.

Manufacturing Cycle Efficiency

A metric that evaluates the efficiency of a manufacturing process by comparing the value-added time to the total production time.

Queue Time

The duration that an item spends waiting to be processed or serviced in a system.

Delivery Cycle Time

The total time taken from receiving a customer order to the delivery of the product, indicating the efficiency of the production and delivery system.