Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?
A)letter of credit
B)cash in advance
C)sales on open account
D)barter
E)arrival draft

Question

Quizplus · Accepted Answer

Sales on open account would be the best choice for an exporter who has good relations with a buyer in a well-established market. This is because the buyer has a proven track record of paying for goods and services, so the exporter can extend credit to the buyer without the need for additional financing methods such as a letter of credit or cash in advance. However, the exporter should still exercise caution and ensure that clear payment terms and credit limits are agreed upon before proceeding with sales on open account.

Which of the Following Financing Methods Would Be Used by an Exporter