Which of the following is an advantage of the letter of credit system to the importer?
A)Payment for merchandise is made only after receiving the documents.
B)It facilitates the obtaining of preexport financing.
C)Lower price for goods.
D)Lower shipping costs.

Question

Quizplus · Accepted Answer

When using a letter of credit for international transactions,an importer does not have to pay for the merchandise until the documents have arrived and unless all conditions stated in the letter of credit have been satisfied.

Which of the Following Is an Advantage of the Letter