International Trade Finance REVIEW

Please explain each of the following in your own words

What is EDC and how do they help facilitate international trade transactions for Canadian companies? (3)

What is an EDC Performance Security guarantee? What is EDC Performance Security Insurance? (2)

What is EDCs Exporter Guarantee Program? (1)

What is an Accounts Receivable? (1 mark)

What are the two (2) main risks with an exporter having a Foreign Accounts Receivable? (2 marks)

Give two risk mitigation strategies to address the two risks above (2 marks)

Explain what Accounts Receivable Insurance is. (1 mark)

What is the role of a performance bond (via a standby letter of credit) in an International Trade Finance transaction? (1 mark)

What is the main risk in an export issuing a performance bond (via a standby letter of credit)? (1 mark)

How can EDC help an export with issuing a performance bond (via a standby letter of credit) in an International Trade Finance transaction? (2 marks)