Skip to main content

Business Credit Insurance & Political Risk Coverage

Many companies that are involved in international business don't understand the nightmare that political upheaval can cause when it comes to their receivables. Trade credit insurance can eliminate this nightmare.

Political risk coverage is a type of trade credit insurance that eliminates the difficulty of converting foreign currency to local currency. Usually, this is a non-issue since there is a booming foreign exchange market set up just for this purpose. Certain political situations can make it impossible to convert a given currency.

Take a small country that is in the midst of a coup, will the new leadership honor the existing debts of the previous leadership? The willingness to honor debts is what determines the global value of a country's currency (since money is simply a representation of a country's willingness to honor its value).

What about a country that has been declared a rogue nation by the global community? Such a declaration is generally accompanied by economic sanctions against the rogue nation (including restrictions of trading in that country's currency). Once again trade credit insurance can be the difference between getting paid or delivering goods and services for absolutely nothing.

It's the dream of many companies to expand into the global marketplace. Often this expansion is done without really understanding some of the political ramifications of doing so. Any company doing business in an unstable region (or any company that is unsure of political conditions) should use trade credit insurance to guarantee that the hard work of its management and employees will actually bring the income it hopes for.

Comments

Post a Comment

Popular posts from this blog

Too Much Of Politics Over Policy: 5 Considerations

Is the American system of governing, and political system, wounded, destroyed, weakened, or, merely, undergoing a period, of extreme distress? Those, who have followed politics, and the national news, for decades, realize and recognize, there is widespread apathy, within our electorate, which probably, largely explains, our relatively, low, voter turnout! In addition, many, who vote, do so, based on the empty promises, and rhetoric of political candidates, as well as their perceptions, personal biases, and prejudice, and, rather than hopes and aspirations, focus on self - interest! Unfortunately, we often, witness, far too much emphasis on partisan politics, over, quality policy, and the needs of the American people. With that in mind, this article will attempt to briefly review, examine, and consider, using the mnemonic approach, many of these concerns, and considerations. 1. Political/ personal agenda: Who should, versus, who do, elected officials, actually serve, and represent? T...
Post a Comment
Read more

Political Blogs - How to Write Them Effectively

For years you've probably been hearing about blogs, bloggers, the blogosphere, and all things "bloggy". When most people hear the term blog they might think of some geek in their underwear writing unimportant and pointless stuff for other geeks to read. While many blogs might be like this, political blogs are of a different class. Political blogs can be very informative, enlightening, and funny. If you like politics and think you have what it takes to write a blog on politics, you came to the right place. I'm going to share a few tips with you on how to write a great political blog. Even if you don't know how to write like a journalist it doesn't matter -all you need is passion (and a little knowledge). If you don't have strong political opinions then let me stop you right there and suggest you pick a different topic than politics. In order to write a great blog on politics you have to have politics on the brain, meaning, you have to be a politic...
Post a Comment
Read more

Political Correctness and Bigotry

The word "bigot" gets thrown around all the time in politics, and in many cases it is wrongly placed. I got accused of being a bigot when I suggested that peaceful Muslim-Americans should report those Muslim-Americans who intend terrorist action. This is not bigotry, it is reason. The Muslim-American communities are tight-knit, and people there are in a position to know who is planning what action. So getting them to report the terrorists is simple common sense. I, for one, am as far from being a bigot as anyone can be. Many of my best friends are black or Hindu, and I am myself a Russian-Jewish immigrant. If I can be accused of being a bigot, then what hope is there for anyone else? Cultures differ, and practices in them differ. If something exists at a higher rate of chance, then there are going to be reasons for it, even if those are not the reasons that you expect. Most stereotypes have their roots in reality, even when those roots differ from one's expectat...
Post a Comment
Read more