An underlying lack of trust. An excess of factor endowments is the main reason most international transactions require full payment before the buyer receives the merchandise.
<h3>What is the main reason of international full payments' requirement?</h3>
People act in various ways for various reasons. The basic reason that most overseas transactions demand full payment before the buyer receives the goods is that there is a fundamental lack of confidence.
When there is a lack of trust in commercial interactions, it opens the door to a lot of negative thoughts, actions, and feelings. Lack of trust has led to discouragement, depression, and the possibility of self-harm.
There are options missing in the question of which are given below-
a. strict government regulations.
b. an underlying lack of trust. an excess of factor endowments.
c. to trigger lower tariffs.
d. the inability to charge interest on the cost of goods.
Thus, option B is correct.
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