27. Which is the most appropriate method of payment for the exporter in the following
case ?
A contract for supply cloth worth $5,000 per month to the government Oceanea – a
prosperous country. Duration of the contract is 2 years, but renewable. Contract
represents 0.5% of turnover.
A. open account with no security
B. open account with bank guarantee
C. open account with export credit insurance
D. Export credit insurance is advisable . Selling on open account with no security
at all is also possible.
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