Foreign trade risk

Definition of foreign trade risk

The foreign trade risk is the risk of loss associated with any economic activity in foreign trade as a result of future uncertainty, which threatens the capital employed in the company or the expected profits.

Foreign trade restrictions

Foreign trade risks are state-related risks that contain risks associated with activities in foreign trade due to the special situation and activities in the country of the contractual partner. These risks threaten the capital employed and the expected profits. So z. B. political risks, market risks, price risks and credit risks occur. Their predictability or predictability is a problem.

It is a task of international risk management to recognize these risks, to analyze them and to take measures reduction or shifting such risks.


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