chapter 1

Question 1

commercial risks mostly related to?

Answer 1

buyer-seller relationship

Question 2

reluctance (for who is the risk) (commercial risks)

Answer 2

for the seller, the buyer does not want to pay the price

Question 3

insolvency (for who is the risk) (commercial risks)

Answer 3

for the seller, the buyer can’t pay the price

Question 4

protracted default, (for who is the risk) (commercial risks)

Answer 4

for the seller, the buyer is delayed with the payment

Question 5

market risks

Answer 5

vanwege een situatie op de markt, is er kans op verlies in je bedrijf. Dit kan positieve of negatieve marktrevolutie zijn zoals veranderingen in verhouding tussen vraag en aanbod.

Question 6

fluctuating clause

Answer 6

its a way to protect yourself for market risks, increases or decreases the contract price according to changing market conditions like higher or lower taxes

Question 7

can the fluctuation clause be two-sided or only one-sided

Answer 7

two-sided

Question 8

escalator/escalation clause

Answer 8

its a way to protect yourself from market risks, against inflation, raise of costs

Question 9

can the escalator/escalation clause be two-sided or only one-sided

Answer 9

one-sided

Question 10

which risks do you have (5)

Answer 10

• commercial risks
• market risks
• political risks
• transportation risks
• currency risks

Question 11

what is a currency risk

Answer 11

risks that arise from the change in price of one currency against another