. product. This means that if there

Published: 2020-06-16 05:06:03
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Category: General Studies

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. PAD should absorb some incremental costs in exchange for added security. However, traditional trade payment and financing systems may not always provide the best way to garner this security, as ten practically AT P orders, the market it’s selling in, and the relationship with the customer. In response to the latter component of the question, a confirmed documentary letter of credit after review of PAD’s need is not the best option.
Confirmed documentary letter of credit are expensive and time consuming and thus not effective when dealing with the purchasing and shipment of perishable foods. The use of documentary collections is more tailored to the needs of PAD as the documents arrive with the product. This means that if there is a disagreement or disagreement or PAD’s customer does not provide payment the documents are already with the product and quick resale is possible cutting down the spoilage of goods and ultimately profit.

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