An export credit insurance is necessary when the exporter
A. is exposed to the risk that the importer may default on payment.
B. is dealing in a country that has a nonconvertible currency.
C. is unable to obtain any pre-export financing.
D. has received a letter of credit from the importer's bank.
E. has to enter a barterlike agreement.
Answer: A. is exposed to the risk that the importer may default on payment
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International Business
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