Risk Management in International Trade_[全文].docVIP

_Toc324518417 Introduction _Toc324518418 Thanks to international trade, it brings our life more comfortable and more effective. It changes our life from small sides to large sides. A Chinese can dress clothes made from France and a European can eat food but the material from America. Besides, an Australian can provides services in Japan, because of international trade the services can provide easily between countries to country. Moreover, international trade let businessman trade in high-speed and in highly efficient. However, it also has some risks in international trade. Some may lead the company loss some money, and even some may lead large damages. So it is important manage the risks in international trade. In this report our topic is risk management in international trade. Our report divided into four parts. In the first part, it will introduce what are risk and the type of risk. Moreover, it also includes the loss in international trade before risk management. In the second part, it will introduce the existent risks in transaction and the tools of how to manage risk. Thirdly, we will give some successful examples after use risk management. Finally, it will give a conclusion of the whole report. What is Risk It is difficult have certain defined what risk is. Different people have different definition, behavioral scientists, economists, risk theorists, statisticians, and actuaries all have their own idea of risk. But risk is defined of uncertainty traditionally. Based on quot;uncertaintyquot;, risk is defined as uncertainty concerning the occurrence of a loss. In the book named Risk and Insurance, the writer Mark R. Greene and James S. Trieschmann thought that quot;Risk means uncertainty about future loss or, in other words, the inability to predict the occurrence or size of a loss.quot; The loss it means cause by nature accidents, such as earthquake, typhoon, flood and tsunami, which can bring large damage. However, quot;uncertaintyquot; means people cannot