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Explain the flow of goods and paper work in Diagram on Page 74 Ed. 10 [P. 70 in Ed. 9] of your textbook. Explain
a. how the transaction would work without a Letter of Credit.
b. how the transaction will work with the Letter of Credit from Buyer's Bank.
c. how the transaction differs if Seller has a bank and when the Seller does not have a bank.
d. the three purposes and roles of the Bill of Lading in this transaction.
e. how use of the Letter of Credit shifts the risk of non-payment between and among the various parties.
Be sure to explain and differentiate the different paths of the paperwork and the physical delivery of the goods.
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