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2015年职称英语考试补全短文练习题 Financial Risks Several types of financial risk are encountered in international marketing; the major problems include commercial, political, and foreign exchange risk. _____ _____. 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. _____ _____. 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. _____ _____. The alternatives for the exporter were reducing the price, reselling the potatoes, or shipping them home again, each involving considerable cost. Political risk relates to the problems of war or revolution, currency inconvertibility, expropriation or expulsion, and restriction or cancellation of import licenses. _____ _____. 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 risk, so marketers must be prepared to assume them or give up doing business in particular market. Exchange-rate fluctuations inevitably cause problems, but for many years, most firms could take protective action to minimize their unfavorable effects. _____ _____. 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. | 
