Which of the Following Is the Most Risky for an Importer

question 143

Multiple Choice

Which of the following is the most risky for an importer?

• A) Open account
• B) Irrevocable letter of credit
• C) Bank collection time draft
• D) Cash in advance
• E) Consignment

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Definitions:

Consumer Surplus

The gap between the price consumers are ready to pay for a good or service and the price they actually pay.

Complements

Goods or services that are often used together, where the use or consumption of one enhances the use or consumption of the other.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount actually paid.

Early Freeze

An event where temperatures drop to freezing levels earlier in the season than is typically expected.