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Multiple Choice Quiz
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1
Leading or lagging payments:
A)is more useful between unrelated companies than within an IC.
B)usually profits both parties.
C)does not permit either party to gain.
D)depends on an ability to predict currency movements.
2
Swaps:
A)are becoming less popular in international business.
B)are always advantageous.
C)can be used for either currency or interest rate holdings.
D)are used only to change currency holdings.
3
Parallel loans are useful to:
A)save taxes.
B)avoid foreign exchange risk.
C)save tariffs.
D)save interest costs.
4
Switch trading calls for:
A)bait and switch.
B)a third party to dispose of goods delivered by the developing nation.
C)counterfeit goods.
D)switching suppliers.
5
The form of countertrade called compensation calls:
A)for the trade of one item for another.
B)for production in a developing country of an end product made of goods or ingredients supplied by the developed country.
C)for payment by the developing country in products produced by use of developed country equipment.
D)for the exporter to procure parts or services used in producing an end product in the importing country.







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