Podcast
Questions and Answers
How does distance affect international trade transactions?
How does distance affect international trade transactions?
- It accelerates the decision-making process.
- It reduces the shipping costs for the seller.
- It can extend the payment period for buyers. (correct)
- It eliminates the need for discounts.
What concession might a seller make to accommodate a distant buyer?
What concession might a seller make to accommodate a distant buyer?
- Allowing a longer discount period. (correct)
- Providing an additional product at no cost.
- Offering a flat shipping fee regardless of distance.
- Reducing the overall price of the goods.
Why might a seller recognize a need to extend a payment period?
Why might a seller recognize a need to extend a payment period?
- To comply with international trade regulations.
- To accommodate longer shipping times. (correct)
- To reduce the price of goods sold.
- To encourage buyers to purchase more items.
What is a possible implication of allowing an extra 30 days in payment terms?
What is a possible implication of allowing an extra 30 days in payment terms?
Which of the following best describes the impact of geographic considerations on sales?
Which of the following best describes the impact of geographic considerations on sales?
What does 'Net 30' mean in terms of payment terms?
What does 'Net 30' mean in terms of payment terms?
What does 'Net 60, R.O.G.' signify?
What does 'Net 60, R.O.G.' signify?
How does seasonal dating benefit manufacturers or importers?
How does seasonal dating benefit manufacturers or importers?
What is the primary purpose of advance orders in seasonal dating?
What is the primary purpose of advance orders in seasonal dating?
What is likely to be a characteristic of regular terms of trade?
What is likely to be a characteristic of regular terms of trade?
Which of the following is NOT a benefit of seasonal dating?
Which of the following is NOT a benefit of seasonal dating?
What might be an example of seasonal dating in practice?
What might be an example of seasonal dating in practice?
What challenge does seasonal dating address for businesses?
What challenge does seasonal dating address for businesses?
Flashcards
Geographic Considerations in Sales
Geographic Considerations in Sales
Distance between buyer and seller can affect sale terms, particularly in international transactions, influencing timelines and payment periods.
International Trade & Timelines
International Trade & Timelines
In international trade, longer shipping times necessitate adjustments to sales terms, such as extended payment periods to accommodate the buyer.
Seller's Concession
Seller's Concession
To accommodate the buyer's location, sellers may grant concessions, such as extending discounts or payment periods.
Distance & Payment Terms
Distance & Payment Terms
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Net 30
Net 30
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Net 60
Net 60
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R.O.G.
R.O.G.
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Seasonal Dating
Seasonal Dating
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Advance Orders
Advance Orders
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Net 90
Net 90
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Study Notes
Geographic Considerations
- Business transactions, especially international trade, are affected by distance.
- Longer shipping times can impact timelines.
- Sellers may offer extended payment periods or longer discount periods.
Seasonal Dating
- A business practice where extended payment terms are granted to customers buying out-of-season merchandise.
- "Regular terms" often apply to immediate delivery orders.
- "Advance" orders are placed for later delivery to align with market demand.
- This allows manufacturers to plan for production and optimize economic operations.
Example
- A swimsuit retailer may order stock in winter, receiving terms of "Net 90, Seasonal Dating".
- This means the retailer has 90 days to pay the invoice from the beginning of the summer season.
- This approach manages cash flow effectively, aligning it with seasonal income.
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