Which of the following is an advantage of having a letter of credit?
A. It allows payment for merchandise after its delivery.
B. It facilitates an exporter to obtain pre-export financing.
C. It allows an exporter to get a higher price for his or her goods.
D. It helps exporters incur lower shipping costs.
E. It does not require the importer to pay any fee.
Answer: B. It facilitates an exporter to obtain pre-export financing