After having visited several European resort towns, Daisy Doriddle wants to export her one-of-a-kind jewelry designs to tourist stores in several Mediterranean cities. A friend of hers who just graduated with her MBA from Northwestern University suggests that she seek the services of an international factor. As an international factor, Daisy should expect this intermediary to lend her (upfront) the total price she charges for each piece, and then wait for Daisy to sell her jewelry before asking for a percentage of the profits.

Question

Quizplus · Accepted Answer

An international factor is an intermediary that provides financing and credit management services to exporters. However, they typically do not lend upfront for the total price of each piece. Instead, they may provide financing based on the value of the goods being exported, and may require collateral or other guarantees. Additionally, they may charge fees or commissions based on the services they provide, rather than a percentage of the profits.

After Having Visited Several European Resort Towns, Daisy Doriddle Wants