Foreign Trade Risks

Political risk is generally defined as actions or inactions of foreign governments or macroeconomic problems, which interfere with contracts or investments.

Credit risks are the risks of non-payment by a customer for goods or services sold on credit terms. Embargo, Foreign Exchange Transfer Prohibition and Currency Inconvertibility are political events or economic difficulties which prevent, restrict, delay or control the transfer of currency from the country of risk. 

Mitigation of political and credit risk is, therefore, a significant factor in the success of overseas projects, investments, and contracts.