Power, Clarity, and Compliance: A Critical Discourse Study of Letters of Credit

Abstract

This research investigates the critical role of language in shaping power, clarity, and compliance in the discourse of letters of credit, an essential financial instrument in international trade. The study aims to analyze how linguistic strategies in these documents ensure contractual obligations, mitigate ambiguity, and manage power relations among key stakeholders, including financial institutions, importers, and exporters. Using a qualitative method grounded in discourse analysis, the research examines authentic letters of credit to uncover recurring rhetorical structures, legalistic terminology, and directive language that enforce compliance with international trade protocols. The results indicate that while the standardized language in letters of credit enhances clarity and minimizes disputes, it also reinforces institutional authority, often favoring banks and experienced traders over smaller stakeholders. The study concludes that linguistic precision in financial documents is crucial for maintaining trust, security, and transparency in cross-border transactions. However, the rigid and technical nature of the discourse may create asymmetrical power dynamics, impacting less experienced users. The research highlights the need for greater linguistic accessibility in trade documentation and offers practical insights for improving equity and communication effectiveness in global trade, particularly as digitalization reshapes the landscape of financial documentation.