Which of the following is an advantage of a letter of credit for an importer?
A)The importer does not have to pay for the merchandise until the documents have arrived.
B)Obtaining pre-export financing becomes easier.
C)It helps the importer to get goods for a lower price.
D)It results in lower shipping costs.
E)The importer does not have to pay the third party a fee for facilitating the transaction.

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 a Letter