RameTep Inc., a furniture manufacturing company, follows a method of transaction through which it exports goods without transferring ownership to an importer. The importer doesn't pay RameTep until a third party has bought the goods from the importer and unsold goods are returned to the company without any extra expenses. The given scenario is an example of _____, a major method of transacting international business.

Question

Quizplus · Accepted Answer

This scenario describes consignment, where goods are sent to an importer (or consignee) who pays the exporter (or consignor) only after the goods are sold to a third party. Unsold goods can be returned without extra expenses.