Economics · International Trade Finance
In a forfaiting transaction, which of the following statements about the risk distribution is incorrect?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The forfaiter assumes the risk of payment default by the importer.
- 2The exporter is completely shielded from both political and commercial risks associated with the payment default.
- 3The exporter has the option to pursue the importer for payment if the forfaiter fails to settle the receivable.✓
- 4The exporter transfers the receivable to the forfaiter without recourse.
Correct answer
The exporter has the option to pursue the importer for payment if the forfaiter fails to settle the receivable.
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