The main disadvantage of the Letter of Credit (L/C) is
A) L/C reduces counterparty and foreign exchange risk.
B) L/C can serve as collateral for pre-export financing vehicle.
C) L/C can entail significant bank fees and reduce borrowing line of credit.
D) All of the above
Correct Answer:
Verified
Q16: A signed _ is issued by the
Q16: The exporter-importer relationship to a corporation of
Q17: Because most international transactions are between affiliated
Q18: The major advantage to the exporter of
Q19: A fundamental problem of international trade is
A)
Q20: _ may be required so that the
Q27: A sight draft is payable on presentation
Q28: The person or company to whom the
Q32: A letter of credit is an agreement
Q38: The primary advantage of a letter of
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