International Negotiations

Background notes

•  A letter of credit is a financial instrument which may be used to pay for goods or services, 

especially where payment in cash would be inconvenient or impossible. See 

http://www.

businesslink.gov.uk/bdotg/action/detail?itemId=1084536269&type=RESOURCES

.

•  Sale-or-return means that a distributor/retailer agrees to stock and sell a product. If the 

product fails to sell, the distributor/retailer can simply return the product to the supplier 

at no cost. This enables the distributor/retailer to experiment with new products 

without the risk of having to buy stock which may not sell.