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will please choose the corecct answer? More companies are selling their goods on

ID: 351056 • Letter: W

Question

will please choose the corecct answer?

More companies are selling their goods on an "open account" basis because

countries are providing more export subsidies

2- the nationalization of Compagnie Francaise d'Assurance pour le Commerce Exterieur has allowed more policies to be issued

the World Trade Organization is now encouraging the practice

countries have implemented quotas for exporters

5-

it is possible to purchase credit insurance to cover the risk of non-payment

1-

countries are providing more export subsidies

2- the nationalization of Compagnie Francaise d'Assurance pour le Commerce Exterieur has allowed more policies to be issued

3-

the World Trade Organization is now encouraging the practice

4-

countries have implemented quotas for exporters

5-

it is possible to purchase credit insurance to cover the risk of non-payment

Explanation / Answer

Option 5 is the right answer because in open account the exporter give credit days of 30,60 or 90 days and there is risk of non-payment by the importers.

In open account the exporter can purchase the credit insurance to cover the risk of non payment.