Jun 23, 2015
Ready MarketSales = ProfitIncreased Product Life CycleMinimize Domestic Downturns
Purpose
Manage ResourcesManage RiskManage Cash Flow
Customer RiskCountry RiskFlexible TermsProblem Resolution
Same as DomesticLegal NameRelated CompaniesAuthorized SignersTime In BusinessFinancialsReferences
Customer Risk
FCIBD & BVeritas
CofaceEulerLocal Presence
Sources
PoliticalMonetaryCulturalExperience
PoliticalStability of Government and PoliciesTrade Balances / ReservesGovernment Interest in “your” Industry
MonetaryMonetary ControlsHard CurrencyExchange Fluctuation
CurrencySell @ per unit cost 100.00 PesoBudget cost @ US $8.50 FX @ 10.50 89.25 Peso
10.75 profit
Actual cost @ US $8.50 FX @11.50 97.75
2.25 profit
lost 8.5% profit
CulturalMeaning of TimeOwnership of DebtOral or written Contract
Country Risk AssessmentBank Reports
Rundt’s Weekly
Periodicals
U.S. Foreign and commercial
service reports
FCIB Country Reports
FCIB Credit and Collection Surveys
FCIB / Political Risk Reports
IMF
Country Agencies
World Bank
Colleges / Universities
Local / Regional International Groups
Local Agents
Export-Import Bank
ExperiencePresence Direct / IndirectOthers in Same IndustryOthers Broad Basis
On Going ProjectChanges are KeyContinued Two Way CommunicationContinued Evaluation and Revision
Payment RiskCash in AdvanceConfirmed Letter of CreditLetter of CreditDocumentary CollectionOpen Account
Least Risk
Most Risk
Risk Mitigation
DelayFlexible TermsProblem Resolution
Risk Mitigation
Foreign Exchange
Natural HedgeHedge Contract
Risk Mitigation
AVALPAGARE’Personal GuaranteeContract Tied to SecurityGuarantee from Related PartyCredit InsuranceForfaiting
Payment