Documents against payments-documents against acceptance

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Explain the key differences between Documents Against Payments (D/P) and Documents Against Acceptance (D/A). Which offers the greatest degree of security to the exporter/vendor? Why?

Explain how the use of a letter of credit (L/C) can secure the position of an exporter/vendor in the following situation:

"A Libyan buyer has expressed interest in purchasing LED lights that will be installed on the runway of new airports. A German company has shown interest in supplying these lights, however is concerned about the financial situation of the buyer as well as the buyer's bank in Libya."

What happens when the exporter delivers the products but the importer refuses to accept them due to perceived quality issues?

Reference no: EM133102528

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