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The risks in the Foreign or international trade can be categorized into two groups including economic risks and political risks. Economic risks include the risk of insolvency of the buyers and protracted default. It is the risk of non-acceptance, risk of exchange rate and risk of changing standards and regulations of the trading countries. On the other hand, political risks involve the risk of cancellation or renewal of trade license. It also includes the war risk, risk of trade tariffs, relations with countries and changing political conditions in the trading countries.
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