Which of the following payment methods provides both parties with a strong measure of protection against commercial and political risks? A)Cash in advance B)Letter of credit C)Draft D)Consignment

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Letter of credit provides both parties with a strong measure of protection against commercial and political risks. The buyer's bank issues a letter of credit to the seller, promising to pay a specified amount of money upon the presentation of certain documents. This ensures that the seller will receive payment as long as they comply with the terms and conditions of the letter of credit. Additionally, the buyer is protected as the funds are held by the bank until the conditions of the letter of credit are met, minimizing the risk of non-delivery or non-performance by the seller.

Which of the Following Payment Methods Provides both Parties with a Strong