International trade has assumed much relevance in an era of open market, globalization, financial liberalization and free trade. This concept of international trade is not a new one. The mentioning of international trade can be found in many historical treatises as well. The Silk Route, for example, bore testimony to cross-country trade and commerce in the historical times. Modern economy has changed a lot with the introduction of concepts such as free trade, ecological economics, international trade law, borderless selling, gravity model of trade, Single Window System, Customs union and so on. Now before getting involved in international trade, any nation evaluates certain core issues that are directly or indirectly associated with the flourishing of business. While there are always threats of financial losses, political risks in international trade pose another significant proposition for the traders to consider.
Political risks in international trade is an all-inclusive phrase that collectively describes the probable risks that might show up any time during the trading process. Companies and investors might be pitted against an uncongenial scenario for business due to political inference or turbulence in the domestic politics of a particular country. It has been historically proved time and again that many business ventures have failed short of expectations due to the intervention of political authorities. A foreign company doing business in a country may face political risks such as likely loss of revenues from confiscation of business property, nationalization and regulatory charges being imposed on cross border transactions. There is another possibility that is feared by the investors coming over to a particular country for business. It is often seen that the government itself or an agency working under the aegis of the government refuses to honor a business contract. Not only is it humiliating for the concerned trader, it also brings down the credibility factor of that company to the eyes of its labors. Eventually as the contract goes for a toss, the company faces a major financial crisis.
Political risks in international trade also involve potential deprivation resulting from civil wars, riots, strikes, terrorist attacks and so on. An issue that runs rampant in many of the third world countries is the perpetual threat of boycotting the work due to any odd reason. The suspension of work leads to a heavy loss in productivity and hence the concerned project receives a major setback in terms of financial gain. Meeting the production target specified by clients becomes a major cause for concern in such cases.
There are some political risks which are country specific. They tell upon the foreign enterprises operating within particular countries. In India, for instance, foreign investments may face a lot of unwelcoming scenario due to internal conflicts among major political parties. Protests against land acquisition have recently come to the forefront in India. All these country specific risks must be considered seriously before taking up any major contract.
The most fascinating thing about import is that regardless of political risks in international trade, the consumers can enjoy specialty goods and services brought to them by traders hailing from different socioeconomic and sociocultural backgrounds. | 
