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What are bills of lading and how do they facilitate trade financing?
Step by step
Solved in 2 steps
- Explain the difference between Trade Payable and Other Payable with relevant examples.What causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet exposure compare with transaction exposure?What is a repurchase agreement (product financing)arrangement? How should a product repurchase agreementbe reported in the financial statements?
- explain what is Trade credit with a comprehensive example.What are the sources of foreign financing?What is a Letter of Credit? Please discuss how a Letter of Credit work. Why is Letter of Credit often used in international trade financing? What are some of its advantages compared to other forms of payment? Disadvantages?