Buyer's Risks

Unit 4.2- Buyer's Risks

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

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

• Introduction
• Ensuring Timely Payment
• Facilitating External Financing
• Summary
• Resources
• Activities
• Assessment

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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