A Bank Issuing a Letter of Credit on Behalf of an Importer

question 43

True/False

A bank issuing a letter of credit on behalf of an importer is obligated to make the payment due under the letter of credit regardless of the importer's willingness or ability to pay.

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Definitions:

Transnational Corporations

Large companies that operate and have assets in more than one country, making them influential global economic entities.

World Democracy

The concept of promoting democratic governance and principles at a global level, aiming for political freedom and equality across nations.

Promotion

The act of raising someone to a higher rank or position, often accompanied by an increase in pay, or an effort to make something more popular or widely known.

Oppose Globalization

To oppose globalization means to resist the process by which businesses or other organizations develop international influence or start operating on an international scale, often due to concerns such as cultural erosion, environmental damage, or economic inequality.