Because of the risk involved in an open account, exporters use this approach only with customers of long-standing or excellent credit, or with a subsidiary owned by the exporter.

Question

Quizplus · Accepted Answer

Open accounts involve the risk of non-payment by the customer, so exporters typically only use this approach with established customers with good credit or with subsidiaries owned by the exporter.

Because of the Risk Involved in an Open Account, Exporters