Question

1. When a buyer opens a note in a bank in favor of the seller, then this is which of the following type of commercial payment?

   		cash in advance
   		bills of exchange
   		forfeiting
   		open accounts
   		letter of credit

2 points   

QUESTION 7

1. When a product is sold at full price at home and variable pricing overseas, it is__?

   		Full cost approach
   		Dumping
   		Price escalation
   		Exchange rate fluctuation
   		Inflationary pricing

2 points   

QUESTION 8

1. You found out the prescription drugs are more expensive in the US than in Mexico. You start buying those drugs from Mexico and selling to people in the US. This is then called:

   		Dumping
   		Counter purchase
   		Parallel imports
   		Skimming pricing
   		Variable pricing

2 points   

QUESTION 9

1. A few years ago steel manufacturers from Taiwan, S. Korea, and Japan were found to be selling below the cost of manufacturing steel. This is referred to as:

   		Skimming pricing
   		Fixed cost pricing
   		Dumping
   		Parallel pricing
   		Counter purchase pricing

Answer 1

As per the expert guidelines we have to answer only the first question
6) The correct answer is option e) letter of credit
Letter of credit is a payment mechanism used by buyer in favor of the seller as a guarantee of the payment. Letter of credit is used under certain circumstances.