Go to this text’s Web site at academic. cengage.com/blaw/clarkson and select “Chapter 22.” Click on “Video Questions” and view the video titled International: Letter of Credit. Then answer the following questions.
(a) Do banks always require the same documents to be presented in letter-of-credit transactions? If not, who dictates what documents will be required in the letter of credit?
(b) At what point does the seller receive payment in a letter-of-credit transaction?
(c) What assurances does a letter of credit provide to the buyer and the seller involved in the transaction?