英语论文网

With the development of the international trade, there comes the payment which called the L/C. The L/C uses the credit of bank instead o the business credit, thus in this way, it solves the risk of the international trade on the condition of the distrust between both the two sides. Therefore, the L/C has been the most common way of payment in the international business. It is said that 90 percent of trades are paid by using the L/C.

即使L / C是非常方便，快捷，也有在国际贸易中的高风险。据悉在美国存在着0.5亿美元的损失，所以当使用L/ C付款的L/ C的状态一直备受质疑。

Even though the L/C is very convenient, efficient, it also has high risks in the international trade. It is reported there exist 0.5 billion loss in America when using the Payment of L/C, so the status of the L/C has been highly challenged.

L / C，其预防的风险一直是银行，法律，商业圈，甚至向世界的一个伟大的重点。作为一个传统的支付方式，它具有面对这么多的分歧和讨论。因此，本文基于对L / C的背景，本文将提出一些可行的解决方案的问题所造成的L/ C.

The risk of the L/C and its prevention has been a great focus to the circle of bank, law, business and even to the world. As a traditional way of payment, it has face so much disagreements and discussions. Therefore, this article is based on the background of the L/C, and the article will put forward some feasible solutions to the problems caused by the L/C.

The L/C is a very important means to complish the international trade. The study on the L/C in and abroad mainly focus on the varieties of risks caused by the L/C. There are mainly two kinds of risks, one is the risk of the fraud, another one is the operating risk(Song，Yiying, 6-7).

The article is divided into five parts: the first part is the introduction; the second part introduce the origin, definition and the kinds of the L/C; the third part mainly focus on the kinds of risks caused by the L/C; the fourth part introduces the prevention of the risks; and the last part concludes the risks and the prevention of the L/C.

The origin of the L/C dates from the ancient Roman Law, which regulates the real right in the production of commodities and the creditor’s right in the circulation of commodities and clarify that the written credit documents can be adopted in exchange of goods and currency, in order to exchange of each other’s business reputation(Zhuang，Lemei, 2).

It has been several years since the L/C was used as a means of payment in international trade. Because of the diversification of the modes of trade, the L/C has been widely used. But as market changes fast,there exist lots of unstable factors which can lead to different risks in the international trade, such as not carrying out the contract, even using different reasons to refuse to pay for the goods.

At the beginning of using the L/C, the importers, the exporters and the banks all need to know the definition of the L/C. In 1920, the International Chamber Commerce was set up in Paris. This Commerce aims to promote the relationship of the international trade, and to improve the trade conditions among different countries and to encourage the cooperation of different business community. At the same time, the International Chamber Commerce sets out to study the business of the L/C and to promote it to the banks all over the world. In 1993, there are lots of professors who are expertise