In international trade, an exporter wants to be paid before a consignment is shipped. Correspondingly, the importer wants to pay only upon receipt of the consignment. These conflicting preferences of the parties are a manifestation of:
A)corporate greed.
B)acculturation.
C)lack of trust.
D)cultural insensitivity.
E)countertrading opportunities.

Question

Quizplus · Accepted Answer

Firms engaged in international trade have to trust someone they may have never seen, who lives in a different country, who speaks a different language, who abides by (or does not abide by) a different legal system, and who could be very difficult to track down if he or she defaults on an obligation. Due to the lack of trust between the two parties to an international transaction, each has his/her own preferences as to how the transaction should be configured.

In International Trade, an Exporter Wants to Be Paid Before