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Examples of the commercial risk: -
Non-deliveryFraudNon-paymentQualityDispute or disagreement2. Country risk: -This risk is happening when the possibility of that importerand exporter will be revoked, that wars or civil disruption will break out andinternational payments will be slowed or stopped because of the foreignexchange shortages, boycotts, sanctions or international paymentmoratoriums.Examples of the country risk: -EconomicPoliticalCultural3. Foreign exchange risk: -It is that type of the trade risk when value ofthe trade receivable or import payables is adversely affected by theexchange rate movements, causing loss to the international trader. The firmto structure its operating exposure while also negating appropriate terms ofthe trade. Financial instruments also exist to assist in the mitigation of theforeign exchange risk.Foreign exchange risk arises in cases where the payment or financialinstrument is denominated in a currency other than home currency of theimporter and the exporter. This risk is arising for both parties all the timewhen there is increase in the US $ values.