WHICH IS THE MOST APPROPRIATE METHOD OF PAYMENT FOR THE EXPORTER I...

30. Which is the most appropriate method of payment for the exporter in the following

case? A contract for supply of cloth worth $5,000 per month to the government of

Oceanea – a prosperous country. Duration of the contract is 2 years, but renewable.

Contract represents 25% of turnover.

A. Open account with bank guarantee

B. Open account with export credit insurance

C. If possible, a bank guarantee. Otherwise, export credit insurance

D. Confirmed letter of credit