Financial Risks[综合类职称英语教材]
Several types of financial risk are encountered in international marketing；the major problems include commercial,political,and foreign exchange risk.
1 They include solvency,default,or refusal to pay bills.The major risk,however,is competition which can only be dealt with through consistently effective management and marketing. 2 Such risk is encountered when a controversy arises about the quality of goods delivered,a dispute over contract terms,or any other disagreement over which payment is withheld.One company,for example,shipped several hundred tons of dehydrated potatoes to a distributor in Germany. 3 The alternatives for the exporter were reducing the price, reselling the potatoes, or shipping them home again, each involving considerable cost.
Political risk relates to2 the problems of war or revolution,currency inconvertibility3,expropriation or expulsion,and restriction or cancellation of import licenses. 4 Management information systems and effective decision-making processes are the best defenses against political risk.As many companies have discovered,sometimes there is no way to avoid political risk4,so marketers must be prepared to assume them or give up doing business in a particular market.
Exchange-rate fluctuations inevitably cause problems,but for many years,most firms could take protective action to minimize their unfavorable effects5. 5 International Business Machine Corporation,for example,reported that exchange losses resulted in a dramatic 21.6 percent drop in their earnings in the third quarter of 1981. Before rates were permitted to float,devaluations of major currencies were infrequent and usually could be anticipated,but exchange-rate fluctuations in the float system are daily affairs.
词汇：
solvency n.偿付能力
contract terms合同条款 dehydrated potato脱水土豆
expropriation n.(1)剥夺……所有权(2)没收：征用
expulsion n.(1)逐出,开除(2)呼出,排出
cancellation n.取消,注销：作废,废除
import license进口许可证 exchange-rate fluctuation汇率波动
floating exchange rate浮动汇率
International Business Machine Corporation(美国)国际商用机器公司
注释：
1 .…encountered in day-to-day business.：……在日常的商务中遇到的。
2.relate to：与……有关。例如：
We are interested in what relates to ourselves.我们对与我们自己有关的事感到关注。
3. currency inconvertibility： 货币的不可兑换性
4. …sometimes there is no way to avoid political risk.：……有时政治风险是不可避免的。
5. …to minimize their unfavorable effects.：……把它们的不利影响降到最低程度。
练习：
A Political risk is an environmental concern for all businesses.
B One unique risk encountered by the international marketer involves financial adjustments.
C Commercial risks are
