The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment.The exporter can insure against this possibility by:
A)approaching the World Bank.
B)buying export credit insurance.
C)obtaining preexport financing.
D)filing a suit against the importer in court.

Question

Quizplus · Accepted Answer

The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment.The exporter can insure against this possibility by buying export credit insurance.If the customer defaults,the insurance firm will cover a major portion of the loss.

The Lack of a Letter of Credit Exposes the Exporter