1. Eastern Industries Ltd., a manufacturer/exporter in Canada, is entering into negotiations with Brazilian Telecom, a potential buyer/importer in Brazil. The product is subway cars. What contracts do you anticipate will arise if the negotiations are successful? Who will be a party to the contracts?

2. List at least 5 issues that must be addressed by parties negotiating payment by letter of credit.

3.What is the role of a bill of exchange in a letter of credit arrangement? What is particularly significant about a negotiable instrument? What is the significance of this for the drawer, and for the holder of the bill?