The Export Department received an order from a new customer in Japan. This new account offers us
Question:
The Export Department received an order from a new customer in Japan. This new account offers us entry in the Japanese market, and can be an excellent source of new business.
John: Prior to accepting this order, management requests that the credit of this customer is checked prior to completing the transaction.
Christopher, in situations where the importer is financially healthy, we may choose to extend credit, However, if the importer is financially troubled, we will need to demand payment in a way that will reduce our risk.
What is the point of issue between Christopher and John?
Would the export department benefit by accepting the order and extending credit to this new customer?
Does the export department need to evaluate each of the several different methods of payment in international transactions?
Does an export department manager need to keep current on any issue other than fluctuating currencies, exchange rates, and payment methods?
Would the organization be better off if payment were to be made in Japanese Yen.
Is there any limit as to the rate of commission to be provided to the sales representative who has negotiated the order?
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young