International Marketing Chapter 5 The financial Environment
International Marketing Chapter 5 The Financial Environment
Credit policy Credit availability determines sales and the size of sales abrs is determined by firm-specific factors such as size, experience in international trade, capacity for financing transactions -degree of economic development -factors related to particular transaction
Credit Policy Credit availability determines sales and the size of sales abroad is determined by: -firm-specific factors such as size, experience in international trade, capacity for financing transactions -degree of economic development -factors related to particular transaction
The Credit Policy Allows the Exporter To Determine the extent of risk they are Willing to absorb Explore new ways of financing exports Prepare for a changing environment
The Credit Policy Allows the Exporter To: • Determine the extent of risk they are willing to absorb. • Explore new ways of financing exports. • Prepare for a changing environment
Types of Financial Risk Commercial risk · Politica|risk Foreign exchange risk
Types of Financial Risk • Commercial risk • Political risk • Foreign exchange risk
Reasons of commercial risk Internal changes in the firm Loss of a key customer Cash flow problems Natural disasters Slow payment by government buyers
Reasons of Commercial Risk: • Internal changes in the firm • Loss of a key customer • Cash flow problems • Natural disasters • Slow payment by government buyers