Finanäng international transactions.
With the growth of international trade, transactions
between commercial actors became increasingly complex and reliant on financing.
The main form is known as a letter of credit which is a document issued by a
financial institution that provides a promise of payment for a trade transaction,
implying that it can be redeemed if certain conditions are satisfied. Letters of credit
are mainly used for transactions between actors, such as a buyer and a seller, in
different countries. Large commercial banks commonly finance about 90% of all
the global trade transactions.