The following terms are used to refer to certain instruments and artifacts that are in play in our trade scenario. The application we will build in this chapter uses very simplified forms of these instruments:
- Letter of credit: As we have seen at the beginning of the chapter, this refers to a bank's promise to pay an exporter upon presentation of documentary proof of goods having been shipped. Called L/C for short, this document is issued by the importer's bank at the request of its client: the importer. The L/C states the list of documents that constitute proof of shipment, the amount to be paid, and the beneficiary (the exporter in our case) of that amount. A sample L/C is illustrated in the following ...
