Chapter 6_2

Among the reason why buyer refuse using _____ as payment term is because it create unfavourable cash flow for their business.

• money changer

• open account

• cash in advance

• consignment

__________ is another method of open account and there are no buyers were involved in the process.

• bill of exchange

• open account

• cash in advance

• consignment

Exporter shipped the goods to the importer after the payment has been made refer to using _____ as payment term.

• bill of exchange

• open account

• cash in advance

• consignment

....... is a written order used to order payer to pay payee a specific amount of money on specific date or upon demand.

• bill of exchange

• open account

• cash in advance

• consignment

Exporter receives his/her payment only after foreign distributors sold their product to end customer refer to using _____ as payment term.

• money changer

• open account

• cash in advance

• consignment

Exporter shipped the goods to the importer before the payment refer to using _____ as payment term.

• money changer

• open account

• cash in advance

• consignment

The participants can buy, sell, exchange and speculate on the relative rates of various currency pairs refer to _____ .

• money changer

• open account

• cash in advance

• consignment

....... serves as a legally binding instrument between exporter and importer in international trade.

• bill of exchange

• open account

• cash in advance

• consignment

If the exporter refuse to change and insist of using ....... as payment method, they may lose to competitors who offer more attractive payment terms.

• bill of exchange

• open account

• cash in advance

• consignment

Exporter can use ECI for extra protection and avoid the risk of not being paid by importer. ECI refers to...

• Export Card Insurance

• Export Change Insurance

• Export Company Insurance

• Export Credit Insurance