What Factors Can Reduce or Eliminate the Many of the Risks

question 8

Multiple Choice

What factors can reduce or eliminate the many of the risks that importer and exporters face in international transactions?

• A)Counterparty knowledge and trust
• B)Well drafted contracts and liquidated damage provisions
• C)Security deposits and established collection policies
• D)Limitations on credit sales and factoring

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Definitions:

Market Price

The current price at which a good or service can be bought or sold.

Market Price

The selling price of goods or services at which buyers and sellers agree to transact.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

U.S. Fishery

Pertains to the industry or activity of raising, harvesting, processing, and selling fish, shellfish, and aquatic plants in the United States.