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Question
Which of the following is the first step in a typical international trade transaction?A.The exporter agrees to ship under a letter of credit and specifies relevant information such as prices and delivery terms.
B.The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy.
C.The importer places an order with the exporter and asks the exporter if he would be willing to ship under a letter of credit.
D.The exporter ships the goods to the importer on a common carrier. An official of the carrier gives the exporter a bill of lading.
E.The trusted third party (usually a bank) issues a letter of credit in the importer's favor and sends it to the exporter's bank.
Answer
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