If Shipment Is Made Under a Forfaiting Draft, the Exporter

question 25

True/False

If shipment is made under a forfaiting draft, the exporter is paid once shipment has been made and the draft is presented to the buyer for payments.

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from purchasing one more unit of a good or service.

Natural Logarithm

A mathematical function that calculates the time needed to reach a certain level of growth, based on the constant e (approx. 2.71828).

u(X,Y)

A utility function representing the satisfaction a consumer gets from consuming quantities of goods X and Y.

MRS

Marginal Rate of Substitution, an economic concept that describes the rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of utility or satisfaction.