International Payments Ch. 1-6 Quiz

How often are the Incoterms revised or updated?

What is the most fundamental concern of the buyer?

In financing the transaction, the buyer typically wants to obtain credit that is:

Both buyers and sellers:

What is the most important factor in determining payment method?

A ______ is a contract that provides protection against the risk of loss from change in foreign exchange

The greater the distance between the buyer and seller,

Most times, the buyer does not have the _____ before they are able to sell the goods to customer and pay the sellers

This contract provision refers to the place where any disputes will be settled.

What is not a common method of hedging?

According to Incoterms 2020, Free On Board (FOB), the buyer is responsible for all of the following, except:

What happens if the payment currency specified in the contract dep. between the contract date and the payment date?

Political instability can lead to:

In the "Arbitration Explained" video, who was Alan?

The buyer is usually responsible for import duty, taxes & customs clearance for all Incoterms, except:

If a seller makes a deal to be paid in a foreign currency and that currency depreciates before the payment is made,

What is the most fundamental concern of the seller?

Which type of payment is similar to cash on delivery?

Instead of going to court, the buyer and seller can choose to have a third party to help resolve their difference aka:

Which terms of payment provides the least risk for the buyer and most risk for the seller?

What is at the heart of every business transaction?

Which terms of payment provides the greatest security for the seller and greatest risk for the buyer?

This Incoterm 2020 requires the seller to deliver to a place named by a buyer, typically the buyer’s premises.

What are the three common methods of hedging?

The right (not the obligation) to buy the foreign currency at a specified dollar price any time up to the expiration:

What happens if the payment currency specified in the contract dep. between the contract date and the payment date?

What happens if the payment currency specified in the contract appreciates between the contract date and the payment dat

The right (not the obligation) to sell a specified number of for. currency units to the option seller at a fixed price

According to Incoterms 2020, Free On Board (FOB), the buyer is responsible for all of the following, except: