Importers Direct arranged to have a French winery ship a large quantity of fine wine to the United States. By signing a(n) ________, Importers Direct authorized its bank to make full payment to the French winery if and when the wine arrives at the Importers Direct warehouse in Philadelphia.

Question

Quizplus · Accepted Answer

A letter of credit is one of the services banks provide to help businesses engaged in international business. A letter of credit is a promise by a bank to make payment if certain conditions are met. In this case, the condition is the arrival of the wine at the Importers Direct warehouse.

Importers Direct Arranged to Have a French Winery Ship a Large