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:

Commons Dilemma

A situation in which individuals' short-term self-interest conflicts with long-term group interest and welfare, often leading to the overuse and depletion of a common resource.

Self-Interested

This describes an individual acting in a way that is beneficial primarily to themselves, often at the expense of others or the collective good.

Anonymity

A condition in which a person's identity is not revealed or recognized, making them anonymous.

Altruistic Punishment

A behavior in which individuals punish others for violating social norms, even at a cost to themselves, to encourage cooperation within a group.