2.2.3 Commercial and Credit Risk商业和信用风险
People around the world speak different languages and have different cultures,which often breed unique demands in a region.Commercial risks exist mainly because there is a lack of knowledge of the foreign market and your product lacks adaptability.There is also the possibility of the goods being rejected by the importer due to a delay in transit that prevents him/her from fulfilling his/her commitment to his/her customers.Changes in the international market may cause the importer to ask for amendment or cancellation of the order,posing difficulties or incurring a loss to you.And globally,as at home,competitors may enter the market or turn to local production,which brings down the price.What’s more,if you are negligent in investigating the importer’s credit standing,you may have higher credit risks—the importer may default when market changes or when he/she is insolvent.Worst of all,the importer may even be a fraud.