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Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?
Suggested Answer: D
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34 comments · newest first
TA
Tammy
9 months ago
I disagree, cash in advance is the best way to ensure payment!
AL
Aliza
10 months ago
Open account? That's too trusting for international deals.
CO
Corrinne
10 months ago
I think cash in advance is risky for the buyer.
TE
Tegan
10 months ago
Definitely a Letter of credit! It's the safest option.
CA
Carlota
10 months ago
Wait, are people really using sight drafts these days?
EM
Emogene
11 months ago
I feel like open account is the least secure option, but I’m not confident about which one guarantees shipment.
DO
Dorinda
11 months ago
Sight draft sounds familiar, but I can't recall if it ensures payment before shipment.
AN
Andree
11 months ago
I remember practicing a question about payment terms, and I think cash in advance might be too risky for the buyer.
RO
Rodrigo
11 months ago
I think a letter of credit is the safest option for both parties, but I'm not entirely sure if it guarantees shipment.
SH
Shaunna
12 months ago
I'm a bit confused on the differences between these payment terms. I'll need to review my notes to decide which one is the most secure.
LI
Lindsey
12 months ago
Okay, I remember discussing this in class. I believe letter of credit is the best choice to protect both the buyer and the seller.
MA
Margarita
12 months ago
Definitely not open account - that's way too risky for an international transaction. I'm leaning towards letter of credit or sight draft.
CH
Chau
1 year ago
Hmm, I'm not sure about this one. I'll have to think it through carefully. Maybe letter of credit or cash in advance?
TI
Tijuana
1 year ago
I think the answer is A. Letter of credit seems like the safest option to guarantee the shipment and payment.
ME
Merrilee
1 year ago
Sight draft? Sounds like something out of a spy movie. I'll stick with the classic letter of credit.
AI
Ailene
1 year ago
I believe A) Letter of credit is the safest option to ensure both parties are protected.
IZ
Izetta
1 year ago
I'm not sure, but I think D) Cash in advance could also guarantee payment.
VI
Vincent
1 year ago
I agree with Jenifer, using a letter of credit ensures payment for the shipment.
IS
Isreal
1 year ago
Cash in advance? Who do they think we are, millionaires? Letter of credit is the way to go.
KI
Kiera
9 months ago
Open account could lead to issues later on.
HU
Hubert
9 months ago
Cash in advance is too risky for buyers.
TR
Trevor
9 months ago
Letter of credit is definitely safer.
MA
Markus
10 months ago
Agreed! It protects both parties.
LE
Lenna
1 year ago
Open account? No way, that's way too risky for an international deal. I'd choose letter of credit any day.
NE
Nenita
1 year ago
Definitely, letter of credit is the safest option for international transactions.
AN
Annice
1 year ago
A) Letter of credit
JE
Jenifer
1 year ago
I think the answer is A) Letter of credit.
DO
Dorathy
1 year ago
Definitely going with letter of credit. It's the safest option for international transactions.
HA
Harley
1 year ago
Sight draft can be risky too, the shipper may not get paid if the buyer refuses to accept the goods.
AN
Antonette
1 year ago
I think cash in advance is too risky, you never know if the shipment will arrive.
AL
Alverta
1 year ago
Using letter of credit ensures that the shipment is made and the shipper gets paid. It's a reliable choice.
JU
Jutta
1 year ago
I agree, letter of credit provides security for both parties.
PO
Pok
1 year ago
I agree, letter of credit is the safest option for international transactions.
AL
Alline
1 year ago
Letter of credit is definitely the way to go. It provides security for both parties.