QUESTION THREE [25]

PAYMENT METHODS FOR TRADING INTERNATIONALLY

There are several basic export payment methods available for international transactions. The amount of trust in the buyers ability and willingness to pay is a major factor that determines the method of payment. Over the years documentary letters of credit have been considered to be a safe mode of payment in international trade for both exporters and importers. Source: www.bizmove.com

In view of the above discuss letters of credit as a payment method in international trade.