Final answer:
The correct answer is B. The correct order from highest cost to buyer to the lowest in international business transactions is Cash in Advance, Collection against Documents, Confirmed Irrevocable Letter of Credit, and Consignment Sales.
Step-by-step explanation:
Cash in Advance, Collection against Documents, Confirmed Irrevocable Letter of Credit, Consignment Sales. This order represents the cost to buyer from the highest to the lowest in international business transactions. In terms of risk and cost to the buyer, cash in advance is the highest because the buyer pays for the goods before shipment, bearing all the risk. Collection against documents comes next, with some cost and risk as the buyer pays for documents necessary to obtain the goods. A confirmed irrevocable letter of credit adds security for both parties but also adds bank fees, making it less costly than the previous options.
Lastly, consignment sales represent the lowest cost to the buyer initially, as payment is only made after the goods are sold. These methods reflect the balance of risk between the buyer and seller in international trade and influence the flow of financial payments.