An Exporter Might Have to Forgo a Letter of Credit

question 34

Multiple Choice

An exporter might have to forgo a letter of credit when

• A) competing exporters also require letters of credit.
• B) the importer is facing stiff competition from other importers.
• C) the exporter is a dominant player in a noncompetitive market.
• D) the importer is in a strong bargaining position.
• E) he or she knows that the importer will default on payment.