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Question
For an importer, which of the following is a disadvantage of using a letter of credit for international transactions?A.It results in the importer losing control over the process of trading.
B.It reduces the exporter's level of trust in the importer.
C.It reduces the importer's ability to borrow funds for other purposes.
D.It requires the importer to repay the loan even before the merchandise is sold.
E.It is not issued at the importer's request.
Answer
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Related questions
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Which of the following occurs when a government increases the money supply?
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A.E$/ = (1 + P)/P$
B.E$/ = (1 + P$)/P
C.E$/ = P/P$
D.E$/ = P$/P
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Q:
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What is meant by translation exposure?
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What kind of demand is seen when a small change in price produces a large change in demand?
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If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what kind of products would it most likely sell?
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Which of the following is true of the barriers to international communication?
A.Noise tends to increase the probability of effective communication.
B.Source effects can be beneficial for an international business when potential consumers in a target country have a bias against foreign firms.
C.Many international businesses try to promote positive source effects by deemphasizing their foreign origins.
D.Fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower.
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According to research, when do consumers usually use the country of origin as a cue when evaluating a product?
A.When a firm tries to deemphasize its foreign origins
B.When consumers lack detailed knowledge of a product
C.When an advertising campaign stresses the positive performance attributes of a product
D.When a limited number of messages compete with each other for consumers' attention
E.When a firm resorts to personal selling instead of mass media advertising