|Unit 4.2-Buyer's Risks
Unit 4.2- Buyer's Risks[edit | edit source]
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 | edit source]
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 | edit source]
- Ensuring Timely Payment
- Facilitating External Financing
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.