Which of the following is often used in a country where there is political instability or where the buyer's credit is shaky?
A) letter of credit
B) cash in advance
C) documentary collection
D) open account terms

Question

Quizplus · Accepted Answer

Cash in advance is the best choice in a country where there is political instability or where the buyer's credit is shaky because it ensures that the seller will receive payment before shipping the goods. This reduces the risk of non-payment or default. Letter of credit and documentary collection can also be used, but they involve more complex procedures and may not be as secure in unstable situations. Open account terms should be avoided in such situations as they involve a higher level of risk for the seller.

Which of the Following Is Often Used in a Country