Engaging in international trade is hazardous in comparison to domestic trade. However, as the globalization of American industry continues, an increasing number of firms will undertake international trade, and consequently become subject to all of the risks that lie therein. One of the major risks of engaging in international trade is commercial risk. One particularly noteworthy aspect of commercial risk is the risk of non-completion, a situation in which an importer is not able to pay an exporter for goods it has purchased. Examining how one company, which exports to the People's Republic of China (PRC), manages commercial risk will yield critical information for firms considering trading with China, while providing other companies with added insight on the risks inherent in international trade. Read more...
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