Question & Answer: Chapter 3, GlobalEDGE Research Task 1, page 85…..

Chapter 3, GlobalEDGE Research Task 1, page 85

Increased instability in the global marketplace can introduce unanticipated risks in a company’s daily transactions. As such, your company must evaluate these commercial transaction risks for its foreign operations in Argentina, China, Eqypt, Poland, and South Africa.

Search phrase: commercial transaction

Resource Name: Ducroire|Delcredere Country Risks

Website: http://www.ducroiredelcredere.be

globalEDGE Category: Rankings

Additional Info:

Ducroire|Delcredere is a provider of credit insurance with a specialization in commercial transactions, based in Belgium. On its website, the company provides a “commercial risk assessment” for a large number of countries. The assessment is based on economic and financial indicators for the country, indicators reflecting the country’s payment experience for commercial risk; and indicators characterizing the institutional context in which local companies operate. Category A includes countries presenting a low commercial risk, category B groups those for which it is “normal” and category C are those presenting a high risk.

Expert Answer

 

Cause and Effect list for fish bone diagram:

Cause: Raising level of Instability in the global market

Effect:Unexpected risks in the day to day transactional activities of the company operating in that region. Evaluation of risks on a commercial aspect for operations targeted in Argentina, China, Egypt, Poland, and South Africa.

Category A is a list of countries with low risk, Category B is a list of countries with moderate risks and Category C is a list of countries with high risk factors involved.

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