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Discussion-International Letters of Credit
Firms trading across country and political boundaries have various methods of ensuring payment. One of the methods is the use of International Letters of Credit.
Using the University online library resources and the Internet, do the following:
Find at least two scholarly articles that provide examples of how firms have used International Letters of Credit.
Explain how International Letters of Credit were established.
Analyze how International Letters of Credit facilitated international trade for the firms.
Describe any pitfalls the firms encountered and how the problems were resolved.
Based on what you have determined about GBATT to date and what you learned from your readings and research, what cautionary advice would you offer the CFO about the use of international letters of credit?
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