of countermeasure the company needs to have.
3-2. Transaction Exposure
Transaction exposure is a type of foreign exchange risk faced by companies that engage in
international trade. It is the risk that exchange rate fluctuations will change the value of a contract
before it is settled. Transaction exposure is also called transaction risk.
of sufficient providers (lack of competition)
The number of eligible provider agencies may be so small or nonexistent that the expected competition among providers does not occur.
Limited capabilities of provider agencies
The managerial competence of provider agencies poses problems for government in POS contracting
Clients may be unclear about who is really responsible f
of each party are specified with the view to ensuring that both parties will honorably put the agreement into execution. [免例] （1）甲方需搬的，乙方只硬件搬不据和件安全。 （2）于搬的，乙方如果需行，以后因引起的保修由甲方。 exemptions 1. in performing the services stipulated in the agreement, the carrier shall be responsible for moving the shipper
contract is written based on the Standards of ISDA (International Swap and Derivatives Association). Also, details are agreed upon specifically between the parties of the contract.
According to ISDA in 1999, six types of credit events are defined: failure to pay, bankruptcy, obligation acceleration, obligation default, repudiation/moratorium of a nation, and restructuring.
Barings collapsed – could not meet huge trading obligations
Outstanding futures positions of $27 billion
(Barings’ capital was $615 million)
Second. Supervision problems
Several his superiors had only a vague understanding of derivatives and did not accept responsibility over him.
No one investigated a default in account “88888”
No comprehensive review o