An Export Credit Insurance Is Necessary When the Exporter

question 117

Multiple Choice

An export credit insurance is necessary when the exporter

• A)is exposed to the risk that the importer may default on payment.
• B)is dealing in a country that has a nonconvertible currency.
• C)is unable to obtain any pre-export financing.
• D)has received a letter of credit from the importer's bank.
• E)has to enter a barterlike agreement.

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Definitions:

Industrial Lines

The categorization of businesses based on their primary industrial activity or the product they manufacture or sell.

AFL Split

The division within the American Federation of Labor, a major U.S. labor union, often relating to disputes over union strategies or policies.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Labor Unions

Organizations that represent workers in negotiations with employers over wages, working conditions, benefits, and other labor contract terms.