Creating a banker acceptance

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Suppose that you are a manufacturer of high-tech hardware based in Texas and you need electrical components from a supplier in Taiwan. The Taiwanese company has never done business with you. To facilitate the transaction, you need as importer to present a financial instrument to a large global bank with a branch office in Taipei, Taiwan, which then accepts it, thus officially creating a banker's acceptance. . Say what this financial instrument is and why you need to use this financial instrument?

Reference no: EM132922711

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