A multinational corporation is a business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, Also Known As International Corporation. The idea of multinational corporations was established at early in the 1900s and quickly extended at mid 20 century, normally a multinational corporation develops its own products in its native country and manufactures them abroad, often in Third World nations, such as south east Asia and Africa to gaining the advantages on their labor.

Letter of Credit is payment method that's commonly used in international business. It's a document issued by financial institute, mostly banks, promises that it will honor the draft if the seller's conditions that written in the L/C are met. Through L/C the bank substitutes its own commitment to pay for its customer, or opener. Letter of credit provides great degree of safety for both importer and exporter.