Question
What is forfeiting in the context of international
trade?Solution
An arrangement where a bank or finance company buys a negotiable instrument from an exporter at a discount Forfeiting is a financial arrangement in international trade where a forfeiter (bank or finance company) purchases a negotiable instrument (e.g., Letter of Credit) from an exporter at a discount, providing immediate cash to the exporter while taking on the risk of payment from the importer.
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LACONIC
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