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When an Advance Payment Is Used as the Method of Payment

Question 29

Multiple Choice

When an advance payment is used as the method of payment in international transactions


A) it provides full security to the importer
B) the risk is completely borne by the exporter
C) advance payment is preferred when the exporter and importer are familiar with each other
D) exporter incurs an interest expense because of the upfront payment
E) advance payments in international business are not common in international business

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