1.Discuss 2 problems that a vendor using the 'Collections' payment method could encounter?(2 pts)

2.Jacques Plante has received an order from a new customer in Bolivia. Jacques has never heard of this customer and is not really sure that he trusts him. Several methods of payment have been discussed and Jacques does not know what to do. If you were advising Jacques, which of the following methods would you say is the least secure for the exporter (Plante)?

a)Cash in advance

b)Draft or bill of exchange

c)Letter of credit

d)Consignment sale

3.From the following, which is NOT an example of a negotiable instrument?

a)Cheque

b)Mortgage

c)Promissory notes

d)Bill of exchange

4.Michelle Gaudette, and export consultant has recently been hired by ABC Inc to make the company 'export ready'. Among her duties was to create a number of documents to use when the first international order is received. Select the name of the document which is a bill from the vendor to the buyer that contains the description of the goods, the addresses of the vendor and the buyer and delivery and payment terms. This document is known as a _________________.

a)Bill of lading

b)Commercial invoice

c)Shipper's export declaration

d)Certificate of origin.

5.Documentary collection differs from a letter of credit in that:

a)The exporter does not send the documents to the bank

b)The importer does not receive the documents from a bank

c)The fees for a documentary collection are greater than for a letter of credit

d)The exporter cannot transfer risk to a bank.