Question

What is the key function of a Letter of Credit (LC) in

Q: Answer-What is the key function of a Letter of Credit (LC) in international trade?

The primary function of a Letter of Credit in international trade is to ensure payment to the exporter upon compliance with specified terms and conditions, reducing risk for both the importer and exporter.

international trade?

A To provide a loan to the importer.

B To facilitate the exchange of goods between countries.

C To insure cargo shipments.

D To ensure the payment to the exporter upon compliance with specified terms and conditions.

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What is the key function of a Letter of Credit (LC) in

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