When a Confirmed Letter of Credit Is Used, the Exporting

question 65

Multiple Choice

When a confirmed letter of credit is used, the exporting firm gains because

• A) the government in effect subsidizes shipping costs.
• B) the time involved in shipping is generally reduced.
• C) the firm can sell against the promise of a local bank rather than a firm.
• D) the exporting firm is considered of higher risk.

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