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You Want to Understand the Mechanisms for Financing Exports and Imports

Question 101

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You want to understand the mechanisms for financing exports and imports as they relate to your business,which has never before exported or imported any goods (you have operated completely within your own province).Your company is small,at fewer than 25 employees,but you hope that it will grow substantially in the future.
Describe the most important mechanism,the letter of credit.

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Letter of Credit: A letter of credit is ...

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