Which of the following is a method of export/import financing?
A) offset
B) buyback
C) switch trading
D) documentary collection

Question

Quizplus · Accepted Answer

Documentary collection is a method of export/import financing that involves the exchange of shipping and payment documents between the buyer's and seller's banks. This ensures that the buyer makes payment before receiving the goods, providing some security to the seller. Options A, B, and C are not methods of export/import financing. Offset involves the sale of goods or services to a foreign government in exchange for purchasing goods or services from that same country; buyback involves purchasing goods from a buyer in exchange for future products or equity in the buyer's company; and switch trading involves the exchange of commodities between two parties, typically involving an intermediary.

Which of the Following Is a Method of Export/import Financing