Professional Documents
Culture Documents
Import and Export - Edited.edited
Import and Export - Edited.edited
Name
Course
Institution
Date
2
IMPORT AND EXPORT
Most business people are concerned with improving the level of revenue they are earning
and minimizing the cost of their expenses as low as possible. The income will be maximized if
they enlarge the size of their market. Therefore, the demand for entrepreneurs to trade
internationally (Grimwade, 2000). The entrepreneur may market his products or services in the
web sites. They should be considerate of the following social, cultural factors that may hinder
them from selling in a foreign country. Consider the language factor. Their translation may have
a different meaning that may affect the selling of their product. Ensure they use the simple
International financing takes only two forms. That is a secured and unsecured form of
investment (Rivera-Batiz, & Oliva, 2003). The unsecured financing requires no collateral that is
no security to support the debt. The lender gives liability depending on the creditworthiness of
the person and based on promising to repay. If the client fails to repay, the lender uses the law
forced to take what is owed. Secured financing the borrower gives some assets as the security for
the loan. Therefore, in case of default, the lender can use the asset to repay themselves. The
interest rate of the secured debt is lower than that of unsecured, and most of the consumers prefer
Where carrying out the international market, the entrepreneur exposed to face some risks such as
credit risk. It is the risk associated with not receiving payment after carrying out a transaction.
This risk can be controlled by ensuring they collect the full amount before rending the services.
Secondly, transacting using the letter of credit where the financial institution will pay
immediately after the delivery of the services. Intellectual property risk. This risk is when other
traders use the symbols of another company authorized to trade. It can be avoided by registering
3
IMPORT AND EXPORT
all the trademarks and the name of the property before signing any agreement in the foreign
market.
REFERENCES
Grimwade, N. (2000). International trade: New patterns of trade, production & investment.
Psychology Press.
Rivera-Batiz, L., & Oliva, M. (2003). International trade: Theory, strategies, and evidence.