Question: Rwanda Import Inc. signed a contract with Zimbabwe Export Inc. for the purchase of drilling equipment used in infrastructure development. The Rwandan company is interested

Rwanda Import Inc. signed a contract with Zimbabwe Export Inc. for the purchase of drilling equipment used in infrastructure development. The Rwandan company is interested in obtaining the product prior to payment but the Zimbabwean company wants to receive the payment up-front to minimize their risk of non-collecting. What is the recommended trade instrument for both companies to use?*

Transferable letter of credit

Corporate letter of credit

Letter of credit and letter of guarantee

Open payment terms

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