An Importer Always Has the Option to Cancel an Irrevocable

question 66

True/False

An importer always has the option to cancel an irrevocable letter of credit.

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Definitions:

Market Failure

Occurs when the allocation of goods and services by a free market is not efficient, often due to reasons like externalities, lack of public goods, or monopolies.

Misallocated Resources

Occurs when resources (like labor, capital, or materials) are not used in the most effective manner, often leading to inefficiencies or lost potential in production or service delivery.

Inequitable

Refers to a lack of fairness or justice in a situation or distribution of resources.

Public Goods

Commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.