« previous next »

Author Question: What conditions favor the use of each form of payment? What will be an ideal ... (Read 124 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?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Differences in oxygen-hemoglobin dissociation curves under different physiological conditions and am Differences in oxygen-hemoglobin dissociation curves under different physiological conditions and am
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
Instructions for Completing the CMS-1500 (02/12) Claim Form Continued Instructions for Completing the CMS-1500 (02/12) Claim Form Continued
How to graph quadratic equations that are in factored form y=a(x−r)(x−s) How to graph quadratic equations that are in factored form y=a(x−r)(x−s)
How to choose the right payment plan with changing conditions (Question 3) How to choose the right payment plan with changing conditions (Question 3)
Hereditary Conditions and Gene Mutations in OMIMa Hereditary Conditions and Gene Mutations in OMIMa
Video: Passive Smoke Exposure

For a complete list of videos, visit our video library