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Abstract

The aim of this study is to identify the problems that Palestinian importers would encounter once they acquire letters of credit. It also identifies the effect of variables, like the form of ownership, nationality of the issuing bank, and credibility of the applying firm in the perspective of Palestinian importers. To achieve these goals, the study used a written survey that was delivered to 312 importer. To be able to identify the degree of complexity of these problem. The study used Averages and percentiles; ANOVA was used to test the study's hypotheses. Statistical analysis proved that problems were of moderate effect in general. Some of these problems are depreciation in the value of imported goods because of the delays in importing these goods, fluctuations in currency exchange rates, and the increase in the cost of bank adjustments. Generally., the discrepancy in the effects of these problem that would affect Palestinian importers are due to the credibility of the importer applying for the letter of credit as one variable and the nationality of the issuing bank as another.