個案資料
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A Primer on Risk Management in International Trade
內容大綱
A new entrepreneur planning to start a new exports and/or imports business is confronted with the issue of managing and mitigating various risks in international trade. Risks are inherent to any business, be it domestic or international. However, when business becomes international, the dimensions, complexities, and quantum of risks get amplified. This technical note discusses the nuances of various risks faced by the exporters, such as; credit risk, country risk, and currency risk faced by the exporters, popularly known as the three C's of international trading risks, and the strategies of mitigating those risks. The note also discusses the various risks encountered by the importers, such as; currency risk, supplier risk, and product risk and the methods of managing such risks.