Answer :
A letter of credit is a guarantee that is issued by the importer's Bank. It states that it will honor the payment of export bills to the bank of the exporter up to a certain limit. It is important for an exporter to obtain this document because it ensures the security of the mode of payment adopted to settle any International transaction.
Rate this question :
How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
view all courses
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
RELATED QUESTIONS :
The document cont
NCERT - Business StudiesA receipt issued
NCERT - Business StudiesIn what ways is e
NCERT - Business StudiesDiscuss the proce
NCERT - Business StudiesExplain the meani
NCERT - Business StudiesWhich of the foll
NCERT - Business StudiesWhich one of the
NCERT - Business StudiesWhich one of the
NCERT - Business StudiesWhy is it necessa
NCERT - Business StudiesWhich of the foll
NCERT - Business Studies