In an international transaction involving bank as a third party, the exporter ships the product after ____.
A) the bank receives materials from the importer
B) receiving cleared payment through bank
C) the importer has paid the bank
D) the bank promises to pay on the importer's behalf

Question

Quizplus · Accepted Answer

In international trade, the exporter ships the product after the bank issues a letter of credit or a similar guarantee, promising to pay on the importer's behalf, ensuring the exporter will receive payment.

In an International Transaction Involving Bank as a Third Party