Scenario: Wang's Techno Toys
Ann Wang has been successful in the domestic market selling high-tech toy products. But facing stiff competition at home, Ann has entered international markets by direct exporting.
-Which of these is NOT an export/import financing method that Ann likely has at her disposal?
A) Buyback
B) Letter of credit
C) Advance payment
D) Documentary collection

Question

Quizplus · Accepted Answer

Buyback is when a company sells a product to a foreign buyer and then agrees to buy it back after a certain period of time. This is not a typical export/import financing method and is not likely to be used by Ann in her business. The other options (B, C, and D) are common methods of export/import financing that Ann may have at her disposal, such as a letter of credit, advance payment, and documentary collection.