Janet hires an export merchant to help expand her business internationally. After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when
A) Janet's bank receives a letter of credit from the importer's bank.
B) it receives a letter of credit from Janet's bank.
C) its bank receives a draft from the importer's bank.
D) Janet receives a bill of lading.
E) the ultimate consumer sends a bill of lading to the exporter's bank.

Question

Quizplus · Accepted Answer

A letter of credit from the importer's bank serves as a guarantee of payment for the exporter. Once the exporter's bank receives the letter of credit, it can proceed with sending the merchandise.

Janet Hires an Export Merchant to Help Expand Her Business