Final answer:
The higher level of risk in international cargo is due to customs regulations, long transit distances, and multiple handling points. Trade imbalances do not directly contribute to the increased risk of loss and damage in international cargo.
Step-by-step explanation:
The higher level of risk in international cargo is due to customs regulations, long transit distances, and multiple handling points. These factors can lead to delays, damage, and loss of goods during transportation. However, trade imbalances do not directly contribute to the increased risk of loss and damage in international cargo.