The portion of international business handled on a cash-in-advance basis is not large and this is typically used when credit is doubtful.

Question

Quizplus · Accepted Answer

Cash-in-advance terms are less common in international trade because they place all risk on the buyer, and are usually used when the seller perceives the buyer's credit as doubtful or when the buyer's country is considered politically or economically unstable.

The Portion of International Business Handled on a Cash-In-Advance Basis