Why it is necessary to take insurance in foreign trade ? - Vidyadip

Question

Why it is necessary to take insurance in foreign trade ?

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Answer

Foreign trade is carried out between two countries. The distance between two countries is quite long.
During long distance transportation goods may get damaged because of climate, heat, cold, rain, moisture, cyclone, tempest, accident, sea-robbery etc.
These types of risks are in air transport as well as road transport.
Against these risks, to obtain compensation it is advisable to take insurance.

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