Some international traders barely know about letters of credit. They swap cocoa for cotton or build a shoe factory and take their pay in clogs. Others look for imbalances in the trading positions of countries that practice bilateral clearing, hoping to get trade started again by buying the obligations one country has against another. These practices, unusual or bizarre as they seem to most Americans, are essential to much trade done with socialist states and developing countries.
- © 1979 The Regents of the University of California