A typical foreign trade transaction requires three basic documents:

Question

Quizplus · Accepted Answer

The three basic documents required for a typical foreign trade transaction are a letter of credit, time draft, and bill of lading. A letter of credit acts as a guarantee from the importer's bank that payment will be made to the exporter once the goods are shipped. A time draft is a type of promissory note that obligates the importer to pay a certain amount at a future date, typically once the shipment is received. A bill of lading is a receipt for the shipment of goods, serving as proof of ownership and allowing for the transfer of the goods between parties.

A Typical Foreign Trade Transaction Requires Three Basic Documents