Examkin

Question

Difficulty: EasyCommercial Documents in Foreign Trade

Is the following statement true or false? An open indent gives an agent in foreign trade full discretion to select the manufacturer or supplier of the ordered goods.

Answer: Answer

Answer

True. An open indent permits the foreign buying agent to choose any suitable manufacturer or supplier for the ordered items.
An open indent provides flexibility to the overseas agent to source goods from any reliable manufacturer or supplier offering favorable terms.

Step-by-Step Solution

1
Identify the function of an indent in foreign trade
An indent is an official trade order transmitted by an importer to an overseas buying agent.
Establishing what an indent is forms the foundation for evaluating its classification.
2
Differentiate between an open indent and a closed indent
An open indent allows the buying agent to pick the supplier or manufacturer, whereas a closed indent explicitly names the specific manufacturer or brand to purchase from.
Comparing these two types verifies that the description given in the statement corresponds to an open indent.

Key Concept

Types of Indents in Foreign Trade
Rate this question

Topics

Commercial Documents in Foreign Trade

More questions from this topic