Purchase Solution

International Letter of credit to exporter

Not what you're looking for?

Ask Custom Question

Please help with the following problem.

The manager of the international department of the McAllen Bank learns on the way to work that the ship on which a local exporter shipped some goods has sunk. The manager has received all the documents required in the letter of credit and is ready to pay the exporter for the shipment. In view of the news about the ship, the manager now knows that the foreign customer will never receive the goods. Should the manager pay the exporter, or should he withhold payment and notify the overseas customer?

Purchase this Solution

Solution Summary

The solution outlines procedures and responsibilities surrounding a letter of credit.

Solution Preview

Problem: The manager of the international department of the McAllen Bank learns on the way to work that the ship on which a local exporter shipped some goods has sunk. The manager has received all the documents required in the letter of credit and is ready to pay the exporter for the shipment. In view of the news about the ship, the manager now knows that the foreign customer will never receive the goods. Should the manager pay the exporter, or should he ...

Purchase this Solution


Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.