Dan Kirner, a South Dakota farmer has signed a contract in January 2019 to sell an equivalent of US$200,000 worth of beef to Isetan in Japan. The beef will be delivered in March 2019, however, Isetan will only pay Dan in June 2019. That's a 3 month credit sale

A. What are the risks faced by Dan Kirner, the South Dakota farmer? B. What would you suggest Dan should do to ensure that he would be paid? C. Would you suggest that Dan should insist on having Isetan paid in U.S. dollar? Explain briefly

Answer rating: 100% (QA)

A The risks faced by Dan Kirner include Credit risk Theres a risk that Isetan may default on the pay... View the full answer