Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?
A)letter of credit
B)cash in advance
C)open account
D)barter
E)arrival draft

Question

Quizplus · Accepted Answer

An open account transaction is a sale where the goods are shipped and delivered before payment is due, which is usually in 30 to 90 days. This method is often used by exporters that have a long-standing relationship with the buyer and trust in the established market, making it a common choice for businesses with good relations and confidence in their partners' ability to pay.

Which of the Following Financing Methods Would Be Used by an Exporter