Hi, need to submit a 2000 words paper on the topic The Benefits of International Trade. Cross border trading involves the risk of default by either party to the transaction, it is therefore always preferable that a more secure and appropriate way shall be taken to conduct the transactions at the international level. Letter of Credit is one of the most important instruments to conduct the transactions and is considered as the lifeblood of international commerce as per Kerr L.J, Harbottle (Mercantile) Ltd v National Westminster Bank Ltd  Q.B 146 pg 155. Letter of credit is used a guarantee by a third party to ensure that the payments against the goods exported will be paid off to the seller in due course.
International trade is critical for the overall commerce that takes place between the different countries of the world. The basis of the international trade is deeply rooted in the doctrine of comparative advantage wherein one country trade with others based on the cost of producing each commodity.
However, there are certain rules and regulations that govern the economic transactions that take place as a result of international trade. The rules and regulations basically are promulgated in order to ensure that the risks are adequately covered and each party is suitably protected against any kind of fraud or adverse outcome. International Chamber of Commerce (ICC) is the authority which has the necessary powers to issue guidelines and rules that mostly govern the international trade transactions that take place across the border. UCP Guidelines are the comprehensive set of guidelines issued by the ICC which basically covers the most important aspects of conducting the trade between two parties to the contract across the borders.
International trade is different from the domestic trade in the sense that it carries different and unique risks that are peculiar to this type of trade only.
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