________ normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise.
A) Documentary collection
B) Letter of credit
C) Advance payment
D) Open account

Question

Quizplus · Accepted Answer

Advance payment involves the transfer of money from the importer's bank account to the exporter's bank account before the shipment of goods. It provides the exporter with a high level of security as they receive payment before shipping the goods. However, it may be risky for the importer as they pay in advance and may not have any legal rights if the goods are not delivered or are defective.

________ Normally Takes the Form of a Wire Transfer of Money