Chapter 4 made the point that in a buyer’s market, particularly in an inflationary situation, credit arrangements are as important as price. This chapter considers some of the problems of financing credit through banks or other financial instruments. The need to obtain credit facilities through the banking system implies collateral: an increasingly important form of this is credit insurance. Such credit insurance is the complement to marine insurance, but instead of covering physical risk, i.e. destruction, loss or damage to goods, it covers the commercial and political risk of foreign transactions. It reduces such risks to a measurable cost — again like marine insurance.
Weitere Kapitel dieses Buchs durch Wischen aufrufen
- The Finance and Insurance of Exports
James M. Livingstone
- Macmillan Education UK
- Chapter 8