Protecting corporate balance sheets against political uncertainty. (International Affairs Section).

As trade barriers have crumbled in recent years, companies seeking to globalize their businesses have eagerly expanded into new markets outside the United States and Western Europe. Mexico, for instance, was the United Stares' second biggest trading partner last year after Canada. China was the fourth largest and Brazil thirteenth.

But as lucrative as international trade can be, it carries substantial risk. In the last year, the global economy has cooled dramatically. Corporate credit quality has deteriorated, and a number of major companies have declared bankruptcy or are on the verge of doing so.

Some foreign countries are also in distress. Argentina, ...