2. The different forms of export financing distribute risks differently between the exporter and the importer. Analyze

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2. The different forms of export financing distribute risks differently between the exporter and the importer.

Analyze the distribution of risk in the following export-financing instruments:

(a) Confirmed, revocable documentary credit

(b) Confirmed, irrevocable documentary credit

(c) Open account credit

(d) Time draft, D/A

(e) Cash with order

(

f) Cash in advance

(g) Consignment (h) Sight draft

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International Financial Management

ISBN: 9781118929322

10th Edition

Authors: Alan C. Shapiro, Peter Moles

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