BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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hard to enforce agreements
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control operations abroad hard
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high potential for opportunism
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require s moderate resource commitment
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Detailed explanation-1: -Credit & Financial Risk When doing business internationally, the risk of nonpayment or default by customers is one of the key issues exporters must deal with. Indeed, export credit risk is among the most significant financial risks a company can face.
Detailed explanation-2: -The biggest credit risk when it comes to exporting is a buyer’s inability to pay. One of the best defenses you have against the risk of non-payment is to invest in government-issued export credit insurance (ECI).
Detailed explanation-3: -Whether shipping goods locally or abroad, you face risks such as breakage, loss, theft, vandalism, accident, seizure and contamination. Before you ship any goods, transfer responsibility for shipping to the buyer or seller and take out sufficient insurance.