When an exporter agrees to sell to a foreign buyer using the letter-of-credit format for payment,the next step after the exporter and customer agree on terms of sale is to have the buyer:

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When an exporter agrees to sell to a foreign buyer using the letter-of-credit format for payment, the next step after agreeing on terms of sale is for the buyer to request its foreign bank to open a letter of credit. This ensures that the seller will receive payment once the goods are shipped and the documents are presented in accordance with the terms of the letter of credit. Option A, C, D, and E are not the correct next steps after agreeing on terms of sale.

When an Exporter Agrees to Sell to a Foreign Buyer