Question

a. Provide a comprehensive legal analysis of transaction risks as it relates to international business transaction....

a. Provide a comprehensive legal analysis of transaction risks as it relates to international business transaction.

b. Differentiate the divergent legal systems that canbe encountered in international business transactions.

c. Provide relevant law and policy approaches to managing transaction risk in international business transactions.

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Answer #1

a) Transaction risks are basically the risks involved due to the fluctuations of the currency exchange rates while making trades between two companies having different base currencies in their respective countries. It is due to the time taken prior to settlement. The long time periods between the initiation and settlement of the trade can increase the risk of transaction between two parties.

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