The risks that exist in international trade can be divided into
two major groups:
Economic risks
Risk 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 date, and
Risk of non-acceptance
Surrendering economic sovereignty
Political risks
Risk of cancellation or non-renewal of export or import licences
War risks
Risk of expropriation or confiscation of the importer's company
Risk of the imposition of an import ban after the shipment of
the goods
Transfer risk - imposition of exchange controls by the importer's
country or foreign currency shortages
Surrendering political sovereignty
