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Protection and Export Insurance: the Identification and the Measurement of International Trade Risks

Tamir Agmon
The Geneva Papers on Risk and Insurance
Vol. 11, No. 41, MEASUREMENT AND MANAGEMENT OF INTERNATIONAL TRADE RISKS (October 1986), pp. 249-254
Stable URL: http://www.jstor.org/stable/41950198
Page Count: 6
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Protection and Export Insurance: the Identification and the Measurement of International Trade Risks
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Abstract

International trade risk is a complex political and economic phenomenon. Good understanding of this risk is a necessary condition to be able to deal with it. The taxonomy and the analysis provided in this paper is aimed at helping decision makers to identify the sources of international trade risk, and to manage it as a part of the financial management of the firm. The classification of the risks enables the manager to use the appropriate instruments to reduce, or eliminate different types of risks. For example, political risk should be insured by those agencies who are involved in its creation, while regular economic risks can be dealt with by the market.

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