Forms of Finance for International Businesses

Forms of Finance for International Businesses

12th Grade

9 Qs

quiz-placeholder

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Forms of Finance for International Businesses

Forms of Finance for International Businesses

Assessment

Quiz

Business

12th Grade

Hard

Created by

Latifa Al-Harazi

Used 5+ times

FREE Resource

9 questions

Show all answers

1.

OPEN ENDED QUESTION

2 mins • 1 pt

What are the four methods of finance for international trade?

Evaluate responses using AI:

OFF

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The exporter will arrange for the buyer of the product to send payment before it is delivered

Export credit

Payment by the importer

Bank loan

Letters of credit

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is a benefit of this method: prepayment by the importer

This provides security for both parties

It means that it will have greater liquidity as cash flows into the business before the product has actually been sold

This transfers the risk from the seller to the bank

This means that the business will have to fund the export itself, deferring payment to a later date

4.

MULTIPLE SELECT QUESTION

1 min • 1 pt

Total or part payment in advance may be necessary when importing goods if:

Political situation

Little trust

High demand for goods and paying in advance price can be fixed at a particular level

Importer new and cannot negotiate better terms

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is a letter of credit?

A receipt for the purchase of the goods

A letter from the buyer promising that they will pay for the goods

An amount of money received from the bank

A bank guarantee that the seller of a product will receive an agreed payment from the buyer

6.

MULTIPLE SELECT QUESTION

1 min • 1 pt

Why use letters of credit? Select two.

This provides security for both parties

This provides security for the exporter, knowing that they do not have to worry about credit control

This is a more traditional style arrangement, with businesses borrowing directly from financial institutions to import products

This transfers the risk from the seller to the bank

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is export credit?

When exporters borrow money from the bank

When importers receive an extension on their bank loan

Financial support or guarantees that are given to foreign businesses to help in buying goods or services from UK exporters

When part of the payment is paid up-front

8.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What does export credit mean for the British company exporting overseas?

This means that they will receive only part of the payment up front

This means that the business will have to fund the export itself

This means that they will have to wait for the bank's approval

This means that there is little trust between the two companies

9.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

What is the benefit of working with a bank when wanting to trade internationally?

Banks charge interest on loans

Banks ensure that loans are paid back and keep companies regulated

Banks have vast experience of international business and can be a great source of financial and non-financial support for businesses looking to trade globally

There is little benefit from banks as there are better methods of support nowadays