An Exporter Might Have to Forgo a Letter of Credit

Multiple Choice

An exporter might have to forgo a letter of credit when

A) competing exporters also require letters of credit.
B) the importer is facing stiff competition from other importers.
C) the exporter is a dominant player in a noncompetitive market.
D) the importer is in a strong bargaining position.
E) he or she knows that the importer will default on payment.