Question: The different forms of export financing distribute risks differently between the exporter and the importer. Analyze the distribution of risk in the following export-financing instruments:
a. Confirmed, revocable letter of credit
b. Confirmed, irrevocable letter of credit
c. Open account credit
d. Time draft, D/A
e. Cash with order
f. Cash in advance
g. Consignment
h. Sight draft
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a The revocable letter of credit can be revoked without notice at any time up to the time a draft is presented to the issuing bank As such it is favor... View full answer
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