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An Appraisal of Export Risk
A company can employs agent to handle most aspects of export deals. Returns are obviously lower than DIY, but company is relieved of the need to deal with export administration, shipping, internal transport, etc.
Countertrade is a creative sticky sales project that might not otherwise happen due to currency barriers. Countertrade is an umbrella term for a variety of unconventional reciprocal trading arrangements. It often occurs between developed and developing nations, but it also occurs between one developing nation and another( Nelson, 1999).
Conclusion and recommendation
The report examined the main risks of exporting and give the processes can be adopted to minimise these risks. Overall, the company may face various risks in the process of export. The way to reduce the risks is various too. The most important step is marketing research before entering the market, and adopts kinds of measures in the process of export to minimise the risks. The export company must have a strategic plan with international focus. The exporter must have complete commitment to the buyer, the market and the product they are selling overseas. Exporter should keep contact with the international bank and focus continuously on the political, legal and economic environment in the buyer's market.
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