.excelsior.edu/webapps/assignment/uploadAssignment?content_id=_1904953_1&course_id=_46636_1&assign_group_id=&mode=view”>M6A1 Short Paper: How does a Letter of Credit (L/C) work?
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Image: Letter of credit flowchart, from chapter 16 of the textbook.
Short Paper: How does a Letter of Credit (L/C) work? From this real-world exercise, you will analyze how a L/C works and the respective roles of the exporter, exporter’s bank, importer and importer’s bank..googleusercontent.com/proxy/Kj4p8QAZlsbmYpPAJzpPkU3k0IlKrKL4DI8CKXgqNRuKtuuXJbKAqjWoU3t46QEuA8_XDobKKw_6GotaKODWLqu00AYb-xYTQZhDZh_Wy0YAhnOlWTybWptHs1buOwYondfsTSuGlRNBUpSQkVnubkLuCCj6=s0-d-e1-ft#https://mycourses.excelsior.edu/bbcswebdav/pid-1904953-dt-content-rid-15985685_1/xid-15985685_1″>
As the basis for the exercise:
Read Chapter 16 of the text.
Take a close look at the figure below (also in your textbook) The Use of a Third Party.
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Image: Use of a third party flowchart, from Chapter 16 of the textbook.
Explain how a Letter of Credit works.
Hint: explain in words what is depicted the figure above.
As with the Management Decision activity, the following tutorialwill be of assistance in this activity: .tradeport.org/index.php/tutorials/financing”>Financial Tutorial. Read from the top of page: “Trade Finance .”
To receive full credit, each role (exporter, exporter’s bank, importer and importer’s bank) must be explained in detail in relation to the process sequence.
When ready to turn-in your Letter of Credit Guide, please attach your Word file by clicking the Add Attachments button, and then the Submit button. Business
Review the SBT Essay Rubric located in the “Start Here” section of the course for more information on grading criteria.