INTRODUCTION According to the World Trade Organization (WTO),1 80% to 90% of world trade relies on trade finance. The tools and instruments that are used to finance the world’s trade flows come in many different forms and can be used for a wide array of applications. Traditionally, the letter of credit (LC) or documentary collection (DC) have been the main instruments used, but in recent decades global forces have increased the volume of open account trade conducted.
https://www.wto.org/english/thewto_e/coher_e/tr_finance_e.htm
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Introduction
