APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 45

Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?

Answer options

Correct answer: D

Explanation

The correct answer is D, Cash in advance, as it ensures that payment is received before the shipment is dispatched, thus guaranteeing the shipper gets paid. The other options, while used in international trade, do not provide the same level of security for the shipper regarding payment prior to shipping.