In which of the following trade finance situations would a performance guarantee be procured? A When an exporter wishes to respond to an international public tender that requires all bidders provide cash deposits or an irrevocable guarantee to secure their bids

Subject:EconomicsPrice:2.87 Bought7

Share With

In which of the following trade finance situations would a performance guarantee be procured?

A When an exporter wishes to respond to an international public tender that requires all bidders provide cash deposits or an irrevocable guarantee to secure their bids.

B When two parties engage in a bilateral negotiation outside of the tendering process to reassure the foreign importer and strengthen the position of the seller.

C When negotiating parties are engaged in a long-term international contract and an instrument is needed to undertake payment of the seller to uphold the terms of the commercial contract to the satisfaction of the importer.

D When one of the negotiating parties wants guarantee of financial compensation if a bidder that has submitted a proposal refuses to accept a contract that is being awarded (e.g. due to competing obligations).