A Consignment Arrangement Allows

question 33

Multiple Choice

A consignment arrangement allows:

• A)an exporter to reduce the risks that the purchase price of the goods exported will not be paid.
• B)an importer to use its bargaining power to get the lowest price that the exporter can offer.
• C)an importer to acquire goods for immediate resale without increasing inventory risk.
• D)an exporter to avoid the delays that can be experienced in getting foreign goods cleared through customs.

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Definitions:

Quantity Demanded

The complete volume of a good or service that consumers are ready and financially capable to acquire at a particular price point.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market, leading to market stability.

Buyers

Individuals or entities that acquire goods or services in exchange for money, playing a crucial role in the dynamics of supply and demand in markets.

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses.