1.When a currency is overvalued in relation to Purchasing Power Parity, it is expected to face

a. devaluations to reflect purchasing power parity b. cheaper imported goods c. more competitive markets d. an increase in the value of the purchasing power parity

2.

One way for an exporter to make an offer to an importer is through an international contract of sale. What is the other way?

a.

A Proforma Invoice

b.

A Commercial Invoice

c.

A purchase order

d.

A letter of Credit

3.

Negotiability of a bill of lading means that the shipped goods

a.

may be accepted as collateral by a bank

b.

may be insured

c.

the bill of lading may be used within a letter of credit presentation

d.

may be resold while in transit