International trade often occurs between parties who may never have met,live in different countries,speak different languages,and abide by different legal systems.These factors could result in:

Question

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Firms engaged in international trade have to trust someone they may have never seen,who lives in a different country,who speaks a different language,who abides by (or does not abide by)a different legal system,and who could be very difficult to track down if he/she defaults on an obligation.Consequently,neither party to the trade completely trusts the other.

International Trade Often Occurs Between Parties Who May Never Have