In Bangladesh, import of raw materials are predominantly facilitated through LC, while exports are largely accomplished under contract. Discuss the implication of this dual approach on risk, management in international trade.

What do you understand by bank's Nostro account balance? How does it differ from foreign exchange reserve?

Payment delays and defaults can significantly impact trade relationships. As a banker, propose a risk management strategy to minimize the potential losses arising from non-payment or delay payment situation. Mention both preventive measures and post-default recovery procedures.