Ocean Traders of North America is a firm based in Mobile, Alabama, that specializes in seafood exports and commonly uses letters of credit (L/Cs) to ensure payment. It recently experienced a problem, however. Ocean Traders had an irrevocable L/C issued by a Russian bank to ensure that it would receive payment upon shipment of 16,000 tons of fish to a Russian firm. This bank backed out of its obligation, however, stating that it was not authorized to guarantee commercial transactions. Explain how an irrevocable L/C would normally facilitate the business transaction between the Russian importer and Ocean Traders of North America (the U.S. exporter).Explain how the cancellation of the L/C could create a trade crisis between the U.S. and Russian firms.Why do you think situations like this (the cancellation of the L/C) are rare in industrialized countries?Can you think of any alternative strategy that the U.S. exporter could have used to protect itself better when dealing with a Russian importer?(Points :10)9. Poki Inc., a U.S.-based MNC, is considering expanding into Thailand because of decreasing profit margins in the U.S. The demand for Poki’s product in Thailand is very strong. However, forecasts indicate that the baht is expected to depreciate substantially over the next three years. Should Poki expand into Thailand? What factors may affect its decision?(Points :10)10. If you were a U.S. importer of products from Europe, explain whether the September 11, 2001 terrorist attack on the U.S. would have caused you to hedge your payables (denominated in euros) due a few months later. Keep in mind that the attack was followed by a reduction in U.S. interest rates.