Guarantee to an exporter that the importer of his goods will pay immediately for the goods ordered by him, is known as
A. Letter of Credit (L/C)
B. laissez faire
C. inflation
D. None of the above
Answer: A
Source:
Export & Import
The term export means shipping in the goods and services out of the jurisdiction of a country. The seller of such goods and services is referred to as an "exporter" and is based in the country of export whereas the overseas based buyer is referred to as an "importer". In international trade, "exports" refers to selling goods and services produced in the home country to other markets.
An import is a good brought into a jurisdiction, especially across a national border, from an external source. The party bringing in the good is called an importer.
An import in the receiving country is an export from the sending country. Importation and exportation are the defining financial transactions of international trade.
In international trade, the importation and exportation of goods are limited by import quotas and mandates from the customs authority. The importing and exporting jurisdictions may impose a tariff (tax) on the goods. In addition, the importation and exportation of goods are subject to trade agreements between the importing and exporting jurisdictions.
Goods are capable of being physically delivered to a consumer. Goods that are economic intangibles can only be stored, delivered, and consumed by means of media.