Political Risk, Receivables, and
Export Credit
Companies that work in the global arena will have phys-
ical assets and financial outlays and receivables that all can
be in harms way. The greater our reach into foreign markets,
the greater these exposures are. When a loss occurs, it is usu-
ally swift, large, and a surprise to management personnel.
“How did this happen? We have been doing it this way for
10 years, and this is the first time. Who knew that this
would possibly happen?”
In recent international events, for example, in Vietnam,
Nicaragua, Sudan, Iran, Iraq, Libya, and China, U.S. interests
were confiscated, nationalized, expropriated, or deprived.
The events of 9/11 led to reexamination of wording re-
garding terrorism in property, political ...