The Risk(s)that an Exporter Takes in Requesting Cash in Advance

question 15

Multiple Choice

The risk(s) that an exporter takes in requesting cash in advance as a means of payment is/are

• A) fluctuations in the exchange rate.
• B) it puts the exporter at a competitive disadvantage.
• C) it can increase inventory stockouts.
• D) All of the above
• E) None of the above

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Definitions:

Unauthorized Acts

Actions taken by an individual or entity that have not been approved or sanctioned by the necessary authority or party.

Ratification

The process of officially sanctioning a treaty or agreement to make it legally binding.

Adoption

The legal process by which an individual assumes the parenting of another, usually a child, from that person's biological or legal parent(s).

Unauthorized Contracts

Unauthorized contracts refer to agreements made by individuals who lack the legal authority or capacity to bind themselves or another party to contractual obligations.