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:

FICA Tax

A federal tax in the United States, consisting of a Social Security tax and a Medicare tax, deducted from employees' paychecks to fund these programs.

Payroll Information Sheet

A document that contains details about an employee's salary, deductions, and other payroll-related information.

Social Security Number

A unique nine-digit number assigned to individuals in the United States for tracking earnings and benefits within the social security system.

Beneficiary

A person or entity entitled to receive benefits or funds under a will, insurance policy, retirement plan, or other contract.