Post Utme Aaua 2017 Commerce Question 38

Practice objective / multiple choice question 38 from the 2017 Post Utme Aaua Commerce examination.

Post Utme Aaua 2017 Commerce Objective / Multiple Choice
Question 38 POST_UTME_AAUA • 2017 • COMMERCE • objective

A firm is considering exporting its product to a foreign country. The firm has conducted market research and has determined that the product will be in high demand in the foreign country. However, the firm is concerned about the risks associated with exporting the product, including the risk of non-payment by the foreign buyer. What should the firm do to mitigate these risks?

Answer Options

Correct Answer A. Use a letter of credit to secure payment from the foreign buyer
B. Use a bank guarantee to secure payment from the foreign buyer
C. Do not use any risk mitigation measures and rely on the foreign buyer to pay
D. Use a combination of letter of credit and bank guarantee to secure payment
Correct Answer
A
Correct Option:
Use a letter of credit to secure payment from the foreign buyer

About This Question

This is Post Utme Aaua 2017 Commerce Question 38. It is one of the objective questions from the 2017 Post Utme Aaua Commerce examination.

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