Author Question: What conditions favor the use of each form of payment? What will be an ideal ... (Read 131 times)

cdr_15

  • Hero Member
  • *****
  • Posts: 546
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


akemokai

  • Sr. Member
  • ****
  • Posts: 347
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
 

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

For a complete list of videos, visit our video library