Open AccessApplication of letter of credit in international trade
Author(s) -
Yu Shi
Publication year - 2020
Publication title -
financial forum
Language(s) - English
Resource type - Journals
ISSN - 2251-2659
DOI - 10.18282/ff.v8i1.792
Subject(s) - pace , safer , letter of credit , international trade , globalization , settlement (finance) , business , economics , trade barrier , economic integration , international economics , finance , market economy , computer science , geography , computer security , geodesy , commercial bank , payment
In today's world, with the rapid development of economy, many countries have kept up with the pace of economic globalization, and international trade is becoming increasingly important. As a settlement method with banks as guarantors of both parties, L/C (letter of credit) is much safer than commercial credit, and has become the choice of most buyers and sellers in international trade. The purpose of this paper is to introduce the L/C and discuss its advantages and disadvantages in various situations in the application of international trade, and put forward relevant improvement measures.