32. 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 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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