1. Discuss the relative merits of each of the following trade finance terms: open account; letters of credit; documents against payment; cash in advance. How does each of these methods shift the risks of the transaction? Can you rank them in terms of the exporter's preference? [2] 2. What kinds of considerations determine the terms on which Belco trades with its customers, and in what way do these considerations matter? Support your answer with a regression analysis using the data provided in the spreadsheet appendix (provided on Blackboard). [4] 3. Which terms should Belco offer to the new customers mentioned in the case? [2] 4. How should Pam Arnold attempt to collect the overdue payment from Kooritsa Kiev? [2]