Match the term with its definition.
-An agreement issued by a bank to honor a draft or other demand for payment when specified conditions are met

Question

Quizplus · Accepted Answer

A letter of credit is an agreement issued by a bank to honor a draft or other demand for payment when specified conditions are met.

Answer: A
 A bill of lading is a document that serves as a receipt of goods shipped, a contract of carriage, and a document of title.

Answer: C 
 Counterfeit activity refers to the illegal production and distribution of fake goods, such as currency, designer products, and pharmaceuticals.

Answer: D 
 Economies of scale refer to the cost advantage that arises when production or operation increases in size.

Answer: E 
 Exchange rate refers to the price of one currency in relation to another currency.

Answer: G 
 Political risk refers to the risk that an investment's returns could suffer as a result of political changes or instability in a country.

Answer: H 
 Royalties are payments made to the owner of intellectual property like patents, copyrights, or trademarks for the use of their property.

Answer: B 
 Born-global firms are companies that start doing international business soon after their establishment, often using digital and online technologies to reach international markets.

Match the Term with Its Definition