Using L/C heightens the importer's bargaining power and allows the importer to ask for a price reduction from the exporter.

Name: Using L/C heightens the importer's bargaining power and allows the importer to ask for a price reduction from the exporter.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Since the exporter will only receive payment upon fulfilling the conditions specified in the L/C, the importer has more control over the transaction and can negotiate for better prices and terms.

Using L/C Heightens the Importer's Bargaining Power and Allows the Importer