Exporting consist of higher fighting chances to attract new customers and increase surplus. Although, trading internationally involves higher risks and challenges that one cannot run from, but enhance the capability to minimize them Chand Sharma, Hpj Exim (Director) and Puneet Kandpal, Hpj Exim (Director) pointed out some risk that one might have to face while trading internationally.
1) Reliability of Customer
Evaluating the reliability or credit worthiness can be complicated and might be expensive or impossible at the same time to recover unpaid debts through legal actions.
2) Wholly Different Country and Customer Country’s Risk
Sometimes hammering out deal with country that holds totally different language, business culture and legal system increases the risk of potential problems and chaos as for trading understanding the market is an essential aspect. In spite of this, customer’s country can hold risks like it might be economically weak or politically unstable.
3) Incremental of Financial Burden
Conversing about delivering goods overseas, it is always concluded that it generally take a longer time taking process. It cause a financial burden to the exporter so it’s essential to evaluate whether you can afford to tie up the working capital.
4) Foreign Currency and Exchange Risk
Protecting yourself against the changes in exchange rates should be considered as essential aspect as a little variation in the rate of currency might cost your business higher loss. Also, decision making of receiving and payments making should be reliable and according to your own comfort.
5)Intellectual Property Protection Overseas
Intellectual property consist of uniqueness of product and it’s related information like copyright, trademark, design, logos etc. IP rights only applies in UK and to make your product’s uniqueness and other particularization protected, you must consider IP protection overseas as well.
Planning to give a touch of international trading to your business, you must keep these risks in mind and set up policies in way that they’ll variate these risks. Not taking measures to prevent yourself with these risk can cause major harm to the business and you might have to suffer financial loss.
At HPJ Exim Pvt Ltd, we source only the highest quality products available to provide you with the best range and service in the industry. If you are unable to find the product you require, contact us now to source it for you.