BTEC Unit 5 International Business A Questions and
Answers Verified Solutions Latest Update
Question 1.
Letters of credit
Correct Answer: Bank of the importer agrees that they will pay the supplier as soon
as he order has been completed. Bank
won't check the goods have been received but will check the importer has been
paid. Bank monitors the
agreement.
Question 2.
Export Credits
Correct Answer: UK company allowing overseas company to have goods and pay
at a later agreed time. Can be used if the
businesses supply to each other.
Question 3.
Bank Loans
Correct Answer: Source of finance either through existing banking agreements or
specialist loans.
Question 4.
Economy
Correct Answer: The state of a country or region in terms of the production and
consumption of goods and services and
the supply of money.
Question 5.
Economic Growth
Correct Answer: An increase in the amount of goods and services produced per
head of the population over a period of
time. Economic growth is a long-term expansion of the productive potential of the
economy.
Question 6.
Economic Security
Correct Answer: Economic security or financial security is the condition of having
stable income or other resources to
support a standard of living now and in the foreseeable future.
Question 7.
Factors Influencing Choice of Market
Correct Answer: Size of Market, Type of product/service, Cost of exporting
Answers Verified Solutions Latest Update
Question 1.
Letters of credit
Correct Answer: Bank of the importer agrees that they will pay the supplier as soon
as he order has been completed. Bank
won't check the goods have been received but will check the importer has been
paid. Bank monitors the
agreement.
Question 2.
Export Credits
Correct Answer: UK company allowing overseas company to have goods and pay
at a later agreed time. Can be used if the
businesses supply to each other.
Question 3.
Bank Loans
Correct Answer: Source of finance either through existing banking agreements or
specialist loans.
Question 4.
Economy
Correct Answer: The state of a country or region in terms of the production and
consumption of goods and services and
the supply of money.
Question 5.
Economic Growth
Correct Answer: An increase in the amount of goods and services produced per
head of the population over a period of
time. Economic growth is a long-term expansion of the productive potential of the
economy.
Question 6.
Economic Security
Correct Answer: Economic security or financial security is the condition of having
stable income or other resources to
support a standard of living now and in the foreseeable future.
Question 7.
Factors Influencing Choice of Market
Correct Answer: Size of Market, Type of product/service, Cost of exporting
