Which of the following is an advantage of having a letter of credit?

QUESTION

Which of the following is an advantage of having a letter of credit?

A. It allows payment for merchandise after its delivery.

B. It facilitates an exporter to obtain pre-export financing.

C. It allows an exporter to get a higher price for his or her goods.

D. It helps exporters incur lower shipping costs.

E. It does not require the importer to pay any fee.

ANSWER

B