a. Explain why so many international transactions require international trade credit facilitated by commercial banks, support your answer with an example.

b. Explain the difference in the risk to the exporter between account receivables financing and factoring.

c. Assuming LMN has given a longer credit term facility of 90 days to 60% of the importers from US and UK; ever since the Central Bank (BI) has implemented the regulation on local transactions’ currency, LMN now needs foreign currency inflows faster to pay for its foreign expenses as well as to minimize the exchange rate exposures. Due to this, LMN has considered to use international trade financing. What do you think the most suitable trade credit for the export business of LMN, explain your answer!

Answer rating: 100% (QA)

a International Trade Credit and Commercial Banks International transactions often involve parties from different countries dealing with varying curre View the full answer