Export/import financing in which an exporter ships merchandise and later bills the importer for its value is called ________.
A) advance payment
B) open account
C) a letter of credit
D) documentary collection

Question

Quizplus · Accepted Answer

The export/import financing in which an exporter ships merchandise and later bills the importer for its value is called an open account. In an open account, the importer pays the exporter at a later date as agreed between the two parties, often with a credit period of 30, 60, or 90 days. This method of payment carries a higher risk for the exporter as they do not receive payment until after the shipment has been made, but it can also increase business opportunities and improve customer relationships.

Export/import Financing in Which an Exporter Ships Merchandise and Later