Hottie Potatee,a popular chain of urban potato-bars buys its multi-processing ovens from a German company.With its current push for expansion,the company has signed a ___________ with Across-the-Pond,Inc. ,Global Banking Company,to issue payment to the German manufacturer,once the ovens are installed and Hottie Potatee is assured that the ovens meet its quality assurance standards.

Question

Quizplus · Accepted Answer

A letter of credit is a common payment instrument used in international trade, where the bank guarantees payment to the supplier once certain conditions are met. In this case, Hottie Potatee is using a letter of credit to ensure that the ovens meet their quality standards before payment is released to the German manufacturer.

Hottie Potatee,a Popular Chain of Urban Potato-Bars Buys Its Multi-Processing