Common difficulty that traders face when exporting goods or services

Identify a common difficulty that traders face when exporting goods or services to other countries.
Many customers require face-to-face negotiations on their home turf.

A letter of credit is a document
issued by a bank at the request of an importer.

Which of the following refers to an order written by an exporter instructing an importer, or an importer’s agent, to pay a specified amount of money at a specified time?
Bill of exchange

Which of the following is a valid observation of the Export-Import (Ex-Im) Bank?
It is an independent agency of the U.S government and promotes international trade.

A counterpurchase occurs when
a firm agrees to buy a certain amount of materials back from a country to which a sale is made

A(n) _ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant’s output as partial payment for the contract.
Buyback

Export credit insurance is provided by the _, an association of private commercial institutions operating under the guidance of the Export-Import Bank.
Foreign Credit Insurance Association (FCIA)

A drawback of relying on an export management company is that a company can fail to develop its own exporting capabilities.
True

A sight draft is payable on presentation to the drawee.
True

The main principle of countertrade is to accept advance payments for goods and services that are exported to another country.

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