Application of letter of credit in international trade

Shi Yu

doi:10.18282/ff.v8i1.792

Shi Yu College of Science & Technology, Ningbo University

Ariticle ID: 792

522 Views, 33 PDF Downloads

DOI: https://doi.org/10.18282/ff.v8i1.792

Keywords: International trade, letter of credit, advantages and disadvantages, improvement measures

Abstract

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.

References

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Guo Y. Soft terms of L/C and its risk prevention (in Chinese). Journal of Southeast University (Philosophy and Social Science) 2018; 20(S2): 36-39+63. doi: CNKI:SUN:DNDS.0.2018-S2-007.