International Business Final Exam (ch
14) 2025/2026 Exam Questions and
Verified Answers | Already Graded A+
Lack of trust - 🧠 ANSWER ✔✔created by geographic distance, cultural
distance, language/consensus differences, disputes
cash in advance - 🧠 ANSWER ✔✔with lack of trust, this is what the US
exporter prefers as payment
Open account/COD - 🧠 ANSWER ✔✔with lack of trust, this is what the
French importer would prefer as payment
, Letter of credit - 🧠 ANSWER ✔✔issued by bank at the request of an
importer, bank will pay a specified sum of money to a exporter (contingent
upon presentation of particular, specified documents)
attractive because both parties are likely to trust a reputable bank even if
they do not trust each other
draft - 🧠 ANSWER ✔✔a promise to pay
Order written by an exporter instructions an importer, to importer's agent, to
a pay a specified amount of money at a specified time
draft - 🧠 ANSWER ✔✔also called bill of exchange
sight draft - 🧠 ANSWER ✔✔payable on presentation to the drawee
time draft - 🧠 ANSWER ✔✔allows for a delay in payment, normally 30, 30,
90, or 120 days
time drafts are negotiable; once "accepted" by the drawee (one who remiss
to pay) may be sold to collect funds for a discount
bill of lading - 🧠 ANSWER ✔✔issued by the exporter by the common carrier
transporting the merchandise
14) 2025/2026 Exam Questions and
Verified Answers | Already Graded A+
Lack of trust - 🧠 ANSWER ✔✔created by geographic distance, cultural
distance, language/consensus differences, disputes
cash in advance - 🧠 ANSWER ✔✔with lack of trust, this is what the US
exporter prefers as payment
Open account/COD - 🧠 ANSWER ✔✔with lack of trust, this is what the
French importer would prefer as payment
, Letter of credit - 🧠 ANSWER ✔✔issued by bank at the request of an
importer, bank will pay a specified sum of money to a exporter (contingent
upon presentation of particular, specified documents)
attractive because both parties are likely to trust a reputable bank even if
they do not trust each other
draft - 🧠 ANSWER ✔✔a promise to pay
Order written by an exporter instructions an importer, to importer's agent, to
a pay a specified amount of money at a specified time
draft - 🧠 ANSWER ✔✔also called bill of exchange
sight draft - 🧠 ANSWER ✔✔payable on presentation to the drawee
time draft - 🧠 ANSWER ✔✔allows for a delay in payment, normally 30, 30,
90, or 120 days
time drafts are negotiable; once "accepted" by the drawee (one who remiss
to pay) may be sold to collect funds for a discount
bill of lading - 🧠 ANSWER ✔✔issued by the exporter by the common carrier
transporting the merchandise
