1. Open account payment terms i_s the best option for an international trade transaction: a} In everyr situation and every market b} Only when the importer is a new company c} 1When a longterm relationship has been established d} 1When the exporter has been doing business for many years. 2. Political risk is best dened as the inability of a foreign customer to pay its debts in full and on time as a result of: a} A change in the currency exchange rates b} Actions of their government c) A failure in the banking system d} Lack of funds in the customer's account 3. Insurance is a method of risk mlanagement a} True b} False c} Maybe 4. Alfred Monette has received a number of international orders for his prizewinning honey mustard. In fact, he just received a large order for delivery to Japan. However, as his business is still quite new, he desperately needs money to buy 1,000,000 glass jars for the Japanese order. To cover his production costs, he was counting on a quick payment from a recent sale to an American customer. 1Which one of the following payment methods would you recommend in order for Alfred to be paid immediately and m a} Payment by cheque from the US buyer b} A sight draft that allows the goods to be delivered to the US buyer upon payment of the sale price and his receipt of the export documents. c} A time draft payable to M. Monette when the collecting bank receives payment 5. The principles of risk assessment rely on: a} The customer is the source of most information b} Gathering as many facts from as many sources about the customer as possible c} The sales department to provide key data d} Having nancial statements for all customers ti. A packing list is an important document in international trade. Name 2 rules it plays