AID17546: Mr. Panchal owns a
plastics extruding company. Plastic Moulding Inc. He recently been successful
in landing two offshore orders for plastic parts required in the automobile and
food processing industries. With the help of Letter of credit Mr. Panchal wants
to enter into few newer trade agreements with a Brazilian manufacturer.
a. Discuss the mechanism of
letter of credit
b. Discuss the advantages for
sellers and buyers with respect to Letter of Credit.