In international trade,the supplier (exporter)of a good wants to be paid before he ships his consignment.Correspondingly,the buyer (importer)wants to make payment only upon the receipt of the good.These varying,often conflicting,preferences of parties to a trade are a manifestation of:

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Due to the lack of trust between the two parties to an international transaction,each has his/her own preferences as to how the transaction should be configured.

In International Trade,the Supplier (Exporter)of a Good Wants to Be