« previous next »

Author Question: What conditions favor the use of each form of payment? What will be an ideal ... (Read 47 times)

cdr_15

  • Hero Member
  • *****
  • Posts: 546
on: Jul 7, 2018
What conditions favor the use of each form of payment?
 
  What will be an ideal response?

Question 2

Martin, a manager at an international firm located in China, is required to monitor political risks for his employer. Which of the following would least likely provide Martin with useful information?
 
  A) consulting firms
  B) embassy officials
  C) telecommunication firms
  D) home country employees
International Business: A Managerial Perspective ¦ Griffin, Pustay ¦ 9th Edition
Buy Test-Bank


akemokai

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jul 7, 2018
Answer to Question 1

Payment in advance is favored when the exporter has strong bargaining power and the importer is unknown to the exporter. An open account is favored when the exporter has complete trust in the importer and/or the exporter and importer are part of the same corporate family. Documentary collection is favored when the exporter trusts the importer to pay as specified and/or when the risk of default is low. A letter of credit is favored when the exporter lacks knowledge of the importer and/or when the importer has good credit with a local bank. Credit cards are favored when the transaction size is small. Countertrade is favored when the importer lacks convertible currency and/or the importer or exporter wants access to foreign distribution network.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Prostate cancer. In this example, a large mass has grown into the urinary bladder. Prostate cancer i Prostate cancer. In this example, a large mass has grown into the urinary bladder. Prostate cancer i
CAD conditions CAD conditions
This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and
Instructions for Completing the CMS-1500 (02/12) Claim Form Continued Instructions for Completing the CMS-1500 (02/12) Claim Form Continued
A completed CMS-1500 (02/12) claim form. A completed CMS-1500 (02/12) claim form.
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
Video: Nucleic acid digestion -small intestine

For a complete list of videos, visit our video library