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If the Importer Pays for a Shipment of Foreign Goods

Question 3

Multiple Choice

If the importer pays for a shipment of foreign goods before the goods are shipped:


A) the transaction is referred to as using the cash advance method.
B) the importer will require that the exporter guarantee that the shipment will be made by having the shipment insured by the government of the exporter's country.
C) the transaction is referred to as using the "trust-the-exporter" method.
D) all of the risks of the transaction are transferred to the exporter.

Correct Answer:

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