When should an exporter get export credit insurance?
A)When the exporter is facing a situation where the importer may default on payment.
B)When the exporter is dealing with a country that has a nonconvertible currency.
C)When the exporter is unable to obtain any preexport financing.
D)When the exporter has received a letter of credit from the importer's bank.

Question

Quizplus · Accepted Answer

The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment.The exporter can insure against this possibility by buying export credit insurance.

When Should an Exporter Get Export Credit Insurance