Final answer:
The statement is false; while a letter of credit is a secure method to ensure payment in international trade, the most common payment method for exports is typically an open account arrangement between trusted trading partners.
Step-by-step explanation:
False, the letter of credit is not the most common payment method for exports; in fact, it is one of several payment methods used in international trade. A letter of credit is a commitment by a bank on behalf of the buyer that payment will be made to the seller, provided that the terms and conditions stated in the letter of credit are met, as evidenced by the presentation of specified documents. The most common payment method for exports is actually an open account, especially among established and trusted trading partners. This method is where goods are shipped and delivered before payment is due, usually in 30, 60, or 90 days. However, a letter of credit can be particularly beneficial in situations where the reliability of contracting parties cannot be readily and easily determined, or where the seller is operating in a politically unstable or economically volatile country.