How does the international practice of settling trade transactions differ from domestic practice?
A)In international business,a formal promise to pay is required before obtaining the merchandise.
B)In international business,the seller usually ships merchandise on an open account.
C)In domestic business,a draft is used to settle trade transactions.
D)In international business,the exporter sends a commercial invoice that specifies the amount due and the terms of payment to the importer.

Question

Quizplus · Accepted Answer

Due to the lack of trust in international transactions,payment or a formal promise to pay is required before the buyer can obtain the merchandise.

How Does the International Practice of Settling Trade Transactions Differ