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Importers' bank usually issues a ________ to importers in international transactions.

1 Answer

3 votes
Importers' bank usually issues a letter of credit to importers in international transactions.

A letter of credit is issued by a bank, most common from another country, to guarantee the payment to be made under agreeable circumstances. This is a way to ensure and product the two people doing business that one will get the items and one will be paid for them.
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