A business that thrives today is a business that is more likely to go outside its national borders. The need for internalization is felt more and more as a company grows in size. However, you have to ensure your back before going swimming in troubled waters.
Exporting: strategies for doing it safely In order to secure your import project , there are various ways of selling the products concerned. And it is precisely according to what the exporters are going to do that the protection strategies must be applied. Firstly, it is possible to make B2C sales through online or mail order commerce. On the other hand, there is the solution of resale by local businesses or distributors already established on site. Otherwise, we can also opt for the solution of direct implantation. This can take the form of setting up a branch or a franchise. Apart from that, many companies choose the joint venture with carefully chosen partners. Compared to these different export strategies, the best hedging solutions vary. If the company does not want a direct establishment, it is the Civil Liability that will have to be insured, in the event that complaints are made following product failures. In the other case where the brand really sets up in another country, has a premises there and hires employees, the coverage must be stronger. Insurance exists specifically to be able to cover risks on assets outside the national territory. You have to trust an international insurer so that it can offer a tailor-made intervention. The international risk is not to be taken lightly. And since laws vary from country to country, you have to be very careful. The importance of insuring against international risk To realize how essential it is to protect yourself, it is necessary to be aware of the risks. First, there are factors internal to the destination country. This often materializes in the risk created by its national policy on foreign companies and imports. There is also the very sensitive issue of the risk associated with the development of the host country's economy, something over which exporting companies have no control. Apart from this, we must also consider important points such as the quality of the local workforce, the quality of potentially necessary third-party providers, but also the potential technological delays that the location would suffer from. On the other hand, there are also some somewhat more unusual risk factors. It is a question here of unforeseeable accidents and catastrophes, but also of the defects in the various operations carried out during export. To give concrete examples, there are in particular the possibilities of non-compliance with contracts, execution deadlines or payment defaults. The factors of war or acts of vandalism and theft by man are also difficult to manage without a reliable insurer. The latter is able to handle all the complexity of international risk. Posted by: Abdul Rimaaz
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AuthorAbdul Rimaaz is a specialized construction and business consultant is trained to advise your marketing plan. Categories |