When products are shipped under a ______, the exporter is paid once the shipment is made and the draft is presented to the importer for payment.

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A sight draft is a type of payment that is due once the shipment is made, and the draft is presented to the importer for payment. This is in contrast to a time draft, which allows the importer some amount of time to pay after the shipment has been made. Prepayment arrangements require payment in advance, which may be a deterrent for some customers, and consignment arrangements involve the transfer of ownership of the products to the importer before the payment is made.

When Products Are Shipped Under a ______, the Exporter Is