Describe the Process Involved in Financing Imports and Exports Using

question 61

Essay

Describe the process involved in financing imports and exports using a letter of credit. Why has this system developed? What is the advantage of using this system?

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Definitions:

Increase the Duties

The process of enhancing the responsibilities, workload, or performance expectations of a role or position.

Right to Payment

The entitlement to receive a certain amount of money, typically as a result of a contract or agreement.

Assignee

The person or entity to whom rights, interests, or properties are legally transferred.

Rights to Payment

Legal entitlements to receive money from another party, either through contractual agreement or as compensation for damages.