Risks in Business

A German company makes metal milling machines. The machines employ laser technology to sculpt blocks of steel and other metals into gear wheels, cogs and other precision engineered components for use in aeroplane engines and high performance, expensive cars.
The company has received an order from a British firm to supply six machines, each costing €200,000. The terms of payment are under confirmed irrevocable letter of credit at sight, to be opened by the UK buyer in favour of the German supplier. Each time one of the machines is shipped a drawing will be made from the letter of credit to pay for it.
In terms of structure please write:

1 A brief introduction explaining the proposed transaction and identify the main risks facing the buyer and the seller.

2 Analyse the reasons each party might prefer to use a “confirmed irrevocable letter of credit at sight.” What comfort does it give to each of them and how?

3 How does the letter of credit work after the German supplier has shipped a machine? Use diagrams to explain the flows of documentation, goods and payment.

4 Consider which documentation you think should be called for under the letter of credit and why?

5 Research and explain how: (1) multiple drawings under a letter of credit would work and (2) a revolving letter of credit works. Please note that these were not covered in detail in class.

6 Summary and conclusion. Provide: a summary of the successful transaction and the benefits of using a letter credit.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Homework Market


Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Homework Market

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.


Unlimited Revision

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.


Timely Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.


Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.


Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Homework Market

Place your order

Fill in the order form and provide all details of your assignment.

Homework Market

Proceed with the payment

Choose the payment system that suits you most.

Homework Market

Receive the final file

Once your paper is ready, we will email it to you.

Homework Market Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HomeworkMarket HomeworkMrket


Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HomeworkMarket HomeworkMarket


Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HomeworkMarket HomeworkMarket


Essay Editing

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HomeworkMarket HomeworkMarket

Research Paper

Research Paper

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.