CHAPTER 4 - RISKS IN INTERNATIONAL TRADE

The Following is the risks associated with international Trade and some of the risks could also be common to domestic trade.

·         Nonpayment for the goods sold (Credit Risk / Default Risk).

·         Non receipt of goods.

·         Delay in payment.

·         Delay in delivery of goods.

·         Bankruptcy / insolvency of the seller / buyer / banks / insurance company / transport company (credit / confidential report).

·         Quality of goods received different from the one ordered (Inspection Certificate or Analysis Certificate).

·         Country Risk / Political Risk (Change in rules & regulations, payment moratorium, Currency inconvertibility, exchange control).

·         Force Majeure Risk (war, natural disaster).

·         Currency / Exchange Rate Risk (Devaluation / Revaluation / Convertibility).

·         Legal Risk (different laws) / Legislative Risk.       

·         High Demurrage Charges.                                         

·         Language / Local Customs / Business Practices.