TST Ltd, a company based in the USA, has signed a contract to purchase Chinese bamboo...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
TST Ltd, a company based in the USA, has signed a contract to purchase Chinese bamboo from SGT Ltd in Singapore. In actual fact, the supplier of these Chinese bamboo is Zen Bamboo, China. The letter of credit (L/C) governing these relationships is the back-to- back variation. TST Ltd. uses Wells Bank, SGT Ltd uses DBX Bank and Zen Bamboo uses Cathay Bank. a) Identify all parties and their roles in the back-to-back L/C. b) Describe the role of the middleman's bank in a transferable L/C and a back-to-back L/C, How can the middleman's bank reduce the risks it faces in a back-to-back L/C? c) TST Ltd, a company based in the USA, has signed a contract to purchase Chinese bamboo from SGT Ltd in Singapore. In actual fact, the supplier of these Chinese bamboo is Zen Bamboo, China. The letter of credit (L/C) governing these relationships is the back-to- back variation. TST Ltd. uses Wells Bank, SGT Ltd uses DBX Bank and Zen Bamboo uses Cathay Bank. a) Identify all parties and their roles in the back-to-back L/C. b) Describe the role of the middleman's bank in a transferable L/C and a back-to-back L/C, How can the middleman's bank reduce the risks it faces in a back-to-back L/C? c)
Expert Answer:
Answer rating: 100% (QA)
a The parties in the backtoback LC are TST Ltd SGT Ltd Zen Bamboo Wells Bank DBX Bank and Cathay Ban... View the full answer
Related Book For
International Business Law And Its Environment
ISBN: 9781305972599
10th Edition
Authors: Richard Schaffer, Filiberto Agusti, Lucien J. Dhooge
Posted Date:
Students also viewed these accounting questions
-
27) Jane Jones has signed a contract to purchase a home from Blake Blain for $187,000. Ms. Jones has applied for a $162,250 mortgage loan from the Bank of Mississippi. The bank requested from you an...
-
A company based in the United Kingdom has an Italian subsidiary. The subsidiary generates 25,000,000 a year, received in equivalent semiannual installments of 12,500,000. The British company wishes...
-
A computer manufacturer in the USA has 5 major customers (A, B, C, D, E) and currently has 6 computer manufacturing facilities. The company decides to keep some of those facilities operating and some...
-
Find a dense document that has little white space and few headings or graphics. You might look at a legal court filing, a companys privacy statement, or an apartment lease. How could you redesign the...
-
What is it about using a personal digital assistant or smart phone that so many managers believe increases their productivity?
-
On this task you have to evaluate activities and create your own rubric. We asked students of secondary education to provide their ideas on "Online Learning and Teaching" and present them in a...
-
For each of the following, calculate the standard error of the difference \(\left(s \mathrm{X}^{-} 1-\mathrm{X}^{-} ight.\) 2 ) and the \(t\)-test for independent means. a. N = 6, N = 6, X 1 18.50, $...
-
Mary Givens and Peggy Moser are partners engaged in operating The G&M Doll Shop, which has employed the following persons since the beginning of the year: T. Binn (general office...
-
Suppose a company had an initial investment of $50,000. The cash flow for the next five years are $18,000, $15,000, $13,000, $16,000, and $17,000, respectively. The interest rate is 11%. What is the...
-
Robin is a new employee at Big Tech Computers and is debating whether to enroll in a POP with the opportunity for an FSA or an HDHP with an opportunity for an HSA. The POP premium is $550 per month...
-
Do they have texting and scoring materials that you can use? Describe the caseload. What will your daily schedule look like? Number of locations you will be at. Are you working on a team with other...
-
A rectangular loop of length \(\ell=80 \mathrm{~mm}\), width \(w=\) \(60 \mathrm{~mm}\), and resistance \(R=20 \mathrm{~V} / \mathrm{A}\) is located in a uniform magnetic field of magnitude \(B=0.50...
-
Consider a company or organization in the news that is currently responding to a crisis. Which of the five strategies of IRT (Denial, Evasion of Responsibility, Reducing Offensive, Corrective Action,...
-
How many of these lines compile? A. One B. Two C. Three D. Four E. Five F. Six. 17: Comparator 18: Comparator false; String> c2 (s1, s2) > false; pl String s> false; p2 = (String s) -> false; s1=...
-
Design a program that asks the user for the number of males and the number of females registered in a class. The program should display the percentage of males and females in the class. Suppose there...
-
Which lambda expression can be passed to the magic() method? A. (a) -> a B. (b,w) -> (long)w.intValue() C. (c,m) -> {long c=4; return c+m;} D. (Integer d, Integer r) -> (Long)r+d E. None of the...
-
The circle below has center O, and its radius is 2 ft. Given that mLAOB=80, find the area of the shaded region and the length of the arc ADB. Give exact answers in terms of , and be sure to include...
-
Explain five different cases of income exempt from tax with clear examples.
-
The EU sought a declaration that, because of the way in which long-standing Italian law permitted extrajudicial debt recovery by creditors against entities established in other member states, Italy...
-
Maquiladoras have been subject to much criticism. Critics contend that the industry is merely an attempt to attract foreign investment by not strictly adhering to environmental and labor standards....
-
Tetra Laval, a Swedish company that is the world's largest carton-packaging manufacturer, decided to expand into the field of plastic bottle plugs. It sought to buy the French company Sidel, which...
-
What were Aristotles two main classifications of motion?
-
Which depends on gravityweight or mass?
-
Which has the greater density1 kg of water or 10 kg of water?
Study smarter with the SolutionInn App