1. How could TLP have more effectively prepared itself for this undertaking?
2. Apart from the financing arrangements with its bankers, what steps should TLP have taken regarding the trade finance arrangements?
3. Was the negotiating bank justified in refusing to honour its client's drawing, especially given the financial challenges faced by TLP? Explain your answer.
4. 4. Given the scenario that has developed in this transaction and the position TLP is facing, which of the following options would you choose, and why?

A. Refuse the price reduction demand and make arrangements to store the goods to be sold or returned for their own future use.

B. Accept the offer from KSM and reduce the price or negotiate a price reduction less than that demanded by KSM; cap losses and future costs.

C. Refuse the offer, continue to negotiate with the issuing bank and the buyers to accept the documents and the goods in the interest of preserving future relations, and agree to make concessions on the services portion of the contract.