True or False: Cash in advance is the preferred method of payment for buyers and sellers.

Cash in advance is indeed a preferred method of payment from a seller's perspective in international trade transactions. This payment method ensures that sellers receive payment before they ship goods, significantly reducing the risk of non-payment and ensuring that they have liquidity before incurring shipping and handling costs. For sellers, this method eliminates concerns about buyer creditworthiness, as they are guaranteed to receive funds upfront.

From the buyer's perspective, however, cash in advance can be seen as less favorable because it exposes them to risks. Once they pay, they must wait for goods to be shipped, which may lead to issues if the products are not delivered as expected. Despite this, sellers generally prefer this method as it provides financial security.

Therefore, the statement is true because, while it may not be the most favorable for buyers, it is clearly the preferred payment method for sellers, aligning with their interests in minimizing risk.