M6A1 Short Paper: How does a Letter of Credit (L/C) work?

How does a Letter of Credit (L/C) work? From this real-world exercise, you will analyze how a L/C works and the respective roles of the exporter, exporter’s bank, importer and importer’s bank.

(figure) https://www.sendspace.com/file/l6oyn9

Explain how a Letter of Credit works.
Hint: explain in words what is depicted the figure above.

To receive full credit, each role (exporter, exporter’s bank, importer and importer’s bank) must be explained in detail in relation to the process sequence

Please add references at the end of the assignment. Thanks