A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.
Answer the following statement true (T) or false (F)
True
Exporters that insist on less risky payment terms, such as a letter of credit, may find that they are losing business to competitors who do sell on open account. Well-known global firms such as Mercedes-Benz do not accept the extra cost of obtaining letters of credit and give their business to suppliers that will offer them open-account terms.
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