Buyer's Risks

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Gftp.svg Unit 4.2-Buyer's Risks 

Introduction | Timely Payment | External Financing | Summary | Resources | Activities | Assessment


Unit 4.2- Buyer's Risks[edit]

An international manager needs to avoid the main pitfalls of country risk assessment by looking for information in a variety of places, conducting relevant analysis, and changing opinions if necessary. A company must set acceptable risk objectives based on its reward goals and risk tolerance. The key to reducing risk is a thorough assessment of the country and customers. Maintaining a systematic approach for each customer and country in this analysis will assure that each evaluation is consistent, relevant, and objective.


Unit Objective[edit]

The goal of this material is to introduce you to the concepts of commercial, economic and political risks found in a buyer’s country, including understanding these risks and their effect on timely payment and financing international transactions. By the end of this unit you will be able to:

  • identify commercial risk and its impact on timely payment of international transactions.
  • identify economic risk and its impact on timely payment of international transactions.
  • identify political risk and its impact on timely payment of international transactions.


Unit Outline[edit]


Correlation: Materials from this unit correlate with NASBITE CGCP's Knowledge Statement 04/04/02: Knowledge of commercial, economic, and political risks of buyer and buyer's country.

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