The ________ sends a purchase order to the ________.The ________ applies to his bank for a letter of credit.

Question

Quizplus · Accepted Answer

In an international trade transaction, the importer sends a purchase order to the exporter. Once the terms of the purchase are agreed upon, the importer applies to his bank for a letter of credit, which is a guarantee that the bank will pay the exporter for the goods, provided that the exporter presents certain documents, such as bills of lading and commercial invoices, that comply with the terms of the letter of credit. Therefore, the importer is the one who applies for the letter of credit, and the exporter is the beneficiary of the letter of credit. Choice C correctly identifies the importer, exporter, and importer in the transaction.

The ________ Sends a Purchase Order to the ________

The Sends a Purchase Order to the