What tools are utilized to shift the burden of non-payment to a third party, such as an insurer?
Answer
Letters of credit or export credit insurance
Detailed contractual structuring often utilizes tools like letters of credit or export credit insurance, which effectively shift the risk of non-payment onto a third party, such as a government agency or private insurer.
Related Questions
What are the two major categories into which export trade dangers are typically divided?What is often the primary concern associated with commercial risks in export trade?Which of the following is explicitly mentioned as an example of a political risk?What tools are utilized to shift the burden of non-payment to a third party, such as an insurer?What aspect distinguishes the Export Risk Manager's expertise from a generalist Import/Export Manager?What factor is cited as strengthening the resilience of careers in export risk management currently?What dual capability is increasingly valued in an effective export risk manager beyond pure finance?If credit analysis reveals excessive exposure, what term of trade might the risk manager influence a sale towards?What modern data feeds are successful risk professionals beginning to incorporate into their predictive models?Besides working directly for exporting firms, where else might graduates find roles in global risk management?What institutional shift confirms that the specialized risk role is deepening its roots in corporate strategy?