The risk(s)that an exporter takes in requesting cash in advance as a means of payment is/are
A) fluctuations in the exchange rate.
B) it puts the exporter at a competitive disadvantage.
C) it can increase inventory stockouts.
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

While cash in advance might include fluctuations in the exchange rate and increases in inventory stockouts,they are not directly applicable.However,it is correct that it puts the exporter at a competitive disadvantage because competitors who offer some form of credit are more likely to get the business.

The Risk(s)that an Exporter Takes in Requesting Cash in Advance