1. A documentary credit is issued to importer to pay exporter for an amount of GBP 40,000 payable with drafts drawn at 30 days from the date of shipment. Document is presented with bills of lading. This is an example of:
a. Export netting
b. Swap contract
c. Letter of credit
d. Future contract
And why?
2. Transfer pricing has been used by multinational corporation to:
a. Minimize tax payments in foreign countries
b. Minimize import tariffs
c. Minimize foreign exchange controls
d. All of the above are correct.
And why?