Why might a buyer ask a foreign company to inflate the invoice?
A) To build up credit for future transactions.
B) To avoid exchange controls and export cash.
C) To act as a bribe.

Question

Quizplus · Accepted Answer

Inflating an invoice can allow a buyer to move more money than the actual value of the transaction out of a country, effectively bypassing exchange controls and restrictions on the export of currency. This can be a method to transfer funds internationally in a manner that might not be allowed under normal circumstances.

Why Might a Buyer Ask a Foreign Company to Inflate