The letter of credit is the common method of payment applied in the global trading process. They ensure that the sellers of goods and services are receiving an agreed-upon compensation and that the purchasers have legal recourse, if the outcome of the transaction is judged unsatisfactory or if a partial or full loss incurs. Although it can improve the transactional efficiency of trade, it can also lead to more opportunities for fraud. Trade misinvoicing is a common form of transactional fraud and is reported to be the largest source of illicit financial outflows in the world(Jean-Paul Rodrigue, 2020). Therefore, the global trading process in the flower supply chain conforms to the characteristic of want or need for lack of trusted third party.
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