Jamal Steel, a rapidly growing small steel company with annual revenues of $8 million is looking to buy a large industrial furnace from Japan that is expected to cost $2 million. The exporter wants Jamal Steel to produce a letter of credit. Jamal Steel's CFO is reluctant to do so. Instead, the CFO wants an order written by the exporter instructing Jamal Steel to pay $2 million at a specified time. In international commerce, what the CFO is asking for is known as a
A. bill of lading.
B. draft.
C. letter of credit.
D. counterpurchase.
E. buyback.
Answer: B. draft
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International Business
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