Reba Sinclair is going to export her fabrics to a company in Hong Kong.Though there are many arrangements that could be made to do this,Ms.Sinclair is going to use the typical arrangement used by most U.S.exporters when shipping goods abroad.Which of the following would that be?

Question

Quizplus · Accepted Answer

Letters of credit are the typical arrangement used by most U.S. exporters when shipping goods abroad. They provide a secure method of payment for the exporter while also ensuring that the importer receives the goods they have paid for. Open account, bills of exchange, closed account, and third-party account are not the typical arrangements used by most U.S. exporters.

Reba Sinclair Is Going to Export Her Fabrics to a Company