Which of the following is true with respect to the international and d

QUESTION

Which of the following is true with respect to the international and domestic practices of settling trade transactions?

A. In an international transaction, a formal promise to pay is required before the buyer can obtain the merchandise.

B. In an international transaction, the seller usually ships merchandise on an open account.

C. In a domestic transaction, a draft is used to settle trade transactions.

D. In an international transaction, the exporter sends a commercial invoice that specifies the amount due and the terms of payment to the importer.

E. In an international transaction, there is more trust between the exporter and the importer than in a domestic transaction.

ANSWER

A