Which of the following payment methods is most commonly used in international trade?

Question

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The letter of credit is the most commonly used payment method in international trade as it provides security for both the buyer and seller by using a bank as an intermediary. Consignment and open account carry significant risks for one or both parties, while cash in advance can be prohibitive for buyers who may not have immediate access to large sums of money.

Which of the Following Payment Methods Is Most Commonly Used