The mcqs are of trade finance

J.S. Trading Company Ltd. based in Malaysia, recently signed a USD 500,000 contract with a supplier of cotton clothing in Taiwan called Quality Cotton Inc. This contract is the first of its kind between the two companies and the first export transaction for Quality Cotton Inc. which has, in recent months, launched many advertising campaigns in foreign markets. Identify two export costs that Quality Cotton Inc. had to incur prior to signing its first contract. a. Clearing and Insurance costs . b. Promotion and custom duties Promotional costs & Contract negotiations costs d. Packaging & shipping costs The typical financing need of Cadlock Plc., a very large corporation and a truly multinational company is a. Good cash flow b. All of the above C. Risk Mitigation d. Financing solutions Grand L'eau Lte (GLL), a French water treatment facility manufacturer, has received a contract to design, manufacture and install a water treatment facility in the Somalian city of Mogadishu. The contract is valued at EUR 1 million and will be paid by the buyer in EUR. GLL has never signed a contract outside of Europe and does not have any strategic partners it can leverage to ensure a successful completion of this contract. After multiple negotiations, the Executive Vice-President of Business Development decided to sign the contract as a first step towards diversifying GLLs market reach. GLL expects to complete the contract without any local partners. Which of the following will have an impact on GLL's cash flow? a. Fluctuations in the foreign exchange. b. Payment via letter of credit which has been secured in an escrow account of a Belgian bank in Antwerp. OC. Exchange controls. d. Political tensions in Somalia can delay delivery and installation of the water treatment facility. Which of the following is a method by which an exporter can try to collect its receivables? Write off the uncollectible amount b. Taking legal action against the buyer with the assistance of lawyers c. Remitting d. Confirmation