1 Assuming that banks in Thailand issue a time draft on behalf of Sports Equipment Inc., and Major Leagues Inc., would Blades receive payment for its roller blades before it delivers them?

Do the banks issuing the time drafts guarantee payment on behalf of the Thai retailers if they default on the payment?

Blades plc has recently decided to establish a subsidiary in Thailand to produce ‘Speedos’, Blades’ primary roller blade product. In establishing the subsidiary in Thailand, Blades was motivated by the high growth potential of the Thai roller blade market. Furthermore, Blades has decided to establish a subsidiary, as opposed to acquiring an existing Thai roller blade manufacturer for sale, in order to maintain its flexibility and control over the operations in Thailand. Moreover, Blades has decided to issue yen-denominated notes to partially finance the cost of establishing the subsidiary.
Blades has decided to issue notes denominated in yen instead of baht to avoid the high effective interest rates associated with the baht-denominated notes.