Read chapter 7 and Answer the following questions:1. Your firm regularly sells to customers in Germany, Poland, Japan, Canada, and Venezuela. How would you evaluate the creditworthiness of firms in each of these countries? How would the credit risk differ in each of these countries? What sources of information would you use? Under what circumstances would you consider selling to firms in these countries without a letter of credit? In which of these countries would you want an American bank to confirm the buyer’s letter of credit? Why? What additional protection does confirming the credit provide?
2. An advising bank presents documents to you for payment. How would you respond to each of the following discrepancies? Explain your answers.

a. The letter of credit calls for an ocean bill of lading. The seller presents a trucker’s bill of lading showing shipment to an ocean port.

b. The sales contract and the letter of credit call for shipment of “Soda Ash Light.” The invoice shows shipment of “Soda Ash Light,” but the bill of lading describes the shipment as “Soda Ash.”
c. The letter of credit calls for shipment of 1,000 kilograms. The invoice shows shipment of an equal amount in pounds.
d. The CIF contract with the letter of credit calls for onboard bill of lading to be dated by December 20. The bill of lading is dated December 20, but the insurance policy is dated December 21.

The professor said Fully discuss all aspects of both problems – including definitions of all legal terms and concepts, and legal analyses of issues. I especially remind you of the independence principle and the rule of strict compliance, and of Exhibit 7.4 (“Common Discrepancies Found in Documentation”).