Risks in international trade

The risks that exist in international trade can be divided into two major groups[edit] Economic risksRisk of insolvency of the buyer,Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due dateRisk of non-acceptanceSurrendering economic sovereigntyRisk of exchange rateSusceptibility to changing standards & regulations within other countries[edit] Political risksRisk of cancellation or non-renewal of export or import licensesWar risksRisk of expropriation or confiscation of the importer's companyRisk of the imposition of an import ban after the shipment of the goodsTransfer risk - imposition of exchange controls by the importer's country or foreign currency shortagesSurrendering political sovereigntyInfluence of political parties in importer's companyRelations with other countries.