Read The Question & Answer. Do You Agree With The Answer? Why Or Why Not. Explain.

Question: How does insurance facilitate global supply chain?

Answer: Global supply chain has many risks, those risks can make it difficult for people to take a chance in trade with new customers throughout the world. Insurance provides a piece of mind, the most obvious concerns would be if this international customer is going to pay or as a buyer, will I get the goods I ordered. Insurance for global supply chain is complex but it allows all participating parties to be more comfortable in trading so long as they understand their coverage. There is many terminology to consider such as barratry which is the willful misconduct on the part of the captain of a ship or crew and average which is a loss incurred by a cargo owner on an ocean voyage (Pierre. D. (2017)). It is important to select the right insurance for you and your needs and to keep in mind that insurances can have deductibles (trade.gov). Insurance facilitates international trade but outweighing the risk is important as well. ECI is export credit insurance, this insurance protects exporters from nonpayment from their clients. There are many different ECI types such as EXIM Bank that offers coverage for a riskier trade or a private sector insurance that assesses each individual need (trade.gov).