Main Risks in International Trade
- Foreign Exchange Risk: Currency fluctuations affecting revenues.
- Political Risk: Government actions like confiscation of goods, wars, terrorism, and strikes.
- Credit Risk: Delays or non-payment by overseas customers.
- Transportation Risk: Loss, damage, or delays during cargo shipments.
Environmental and Ethical Concerns in Cargo Transport
- Environmental Risks: Emissions, pollution, and ecological impact.
- Ethical Risks: Fair treatment of workers, especially on long hauls.
Managing International Business Risks
Businesses in international trade face multifaceted and evolving risks, including financial, operational, and technological factors. Risk management involves analysis, monitoring, and response to balance exposure and awareness amidst changing circumstances. Success hinges on identifying risks and minimizing negative impacts on reputation, profits, and supply chain continuity. Flexible risk management is essential for smooth business operations.