THE EFFECT OF LETTER OF CREDIT ON EXPORT: THE EXAMPLE OF AEGEAN REGION

EGE BÖLGESİ ÖRNEĞİ

Abstract

Countries has the forms of delivery and payment they used when they make foreign trade. One of these payment methods, letter of credit, is the most reliable payment method and the payment method that protects the rights of both parties. The letter of credit is an assurance that payment will be made after the fulfillment of certain conditions for the payment of the goods for export. The aim of this study is to determine whether how effective and important the letter of payment among all other payment methods in Aegean Region export. In this context, the export amounts according to payment methods between 2011 and 2018 were analyzed received from Aegean Exporters' Associations. Payment method with letter of credit were evaluated advantages and usability by comparing the with other payment methods.