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Question:
The text describes problems exporters have with letters of credit. Since letters of credit transactions are document-based, the slightest discrepancies between documents can snag a transaction.
In 200 to 300 words, describe how an organization can mitigate one risk in writing a letter of credit.
REFERENCE
David, P. (2013). International logistics: The management of international trade operations (4th ed.). Berea, OH: Cicero Books.
Chapter 5: International Contracts
Chapter 6: Terms of Trade or Incoterms Rules
Chapter 7: Terms of Payment
Verified Expert
This assignment talks about Letter of Credit. Importing and exporting involves risks. Exporters run the risk of buyers failing to pay for goods, while importers may risk paying but never receiving anything. Because of the distances involved, it may be difficult to resolve any disputes.One way of reducing the risks is to use a letter of credit - sometime known as ‘documentary credit. This assignment is prepared in MS word and it is about 200 words
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