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Firm regularly sells to customers in Germany, Poland, Japan, Canada, and Venezuela.
1. How would you evaluate the creditworthiness of firms in each of these countries?
2. How would the credit risk differ in each of these countries?
3. What sources of information would you use?
4. Under what cricumstances would you consider selling to firms in these countries without a letter of credit?
5. In witch of these countries would you want an American bank to confirm the buy's letter of credit? Why?
6. What additional protection does confirming the credit provide
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The Hospital Administrator of Mega Hospital is negotiating with Acme Surgical Instruments to fill Mega Hospital's requirements for surgical instruments.
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