When trading overseas, which statement is true?

When trading overseas, which statement is true?

• A. Can chase debts.
• B. Can choose to trade in sterling.
• C. Must convert all transactions to USD.
• D. Increase data risk.

Answer: (D)

When trading overseas, data risk grows because more information moves across borders between multiple partners, suppliers, and IT systems. Customer details, invoices, payment information, and communications travel through different countries with varying security standards and data-protection rules. This wider network increases the chances of data breaches, misdelivery of information, or errors, so managing data security becomes more complex and important in international trade.

Chasing debts internationally can be more complicated because enforcement laws and procedures differ by country, so collecting payments isn’t as straightforward as domestic cases. The idea of always trading in sterling isn’t guaranteed either; currency choices depend on contracts and arrangements with counter-parties. And there’s no requirement to convert all transactions to USD. Many currencies can be used, which adds currency risk but isn’t a universal rule.