Thinking of doing business abroad? Then check out these ten tips to help you minimize foreign trade risks.
Stay Up-to-Date
A lot of what you do depends on what is currently happening in the country you are exporting to, so learn as much as you can and stay abreast of the latest developments relating to trade, regulation, and regional trade deals. Assign this task to an employee if you do not have the time.
Make Sure Your Product is Not Restricted
You might be exporting a product that is banned or importing goods that have very high tariffs. In such situations, a partnership with a local partner might give you more access. Make sure you do your research beforehand.
Laws
Laws governing trade, business, disputes, trademarks, employment, and labor are all things you must get familiar with before you start trading. Learn the basics, and hire professionals to manage the more complicated regulations.
Insurance
Insuring your goods will protect you against accidents, theft, or even income loss. Ask your insurer about the different available options and try to get a deal that covers as many insurable aspects of your business as possible.
Currency
You will experience currency fluctuations regularly, so strategize ways to minimize your losses. Organize your billing, payments, and agreements with these fluctuations in mind, and sign forward contracts if possible.
Customs
Customs ensure your goods meet all the regulations and requirements of the country you are exporting to. Always do thorough research to avoid possible conflicts.
Partnerships and Collaboration
It is impossible to know a region like a local who interacts with your potential clients on a daily basis. Strong partnerships with trusted collaborators will give you an edge. It will also help you navigate regulations and laws you are not familiar with.
Logistics
Understanding the process of moving your goods around, including paperwork and freight transport, will minimize the risk of loss, delays, and extra costs you might incur while trading. If you need additional help, hire experts who can better assist you.
Cultural Differences
What may be regarded as an “acceptable behavior” in one country may not be normalized in others. Get acquainted with cultural etiquettes like how people greet and communicate with each other whenever you are visiting a new country. This will help people view you and your company more favorably.
Political Risk
It is always helpful to have an idea of what is happening in the world and around the places where you do business. Understanding politics or sanctions might help you more than you think. Having such knowledge will guide you when you face unrest, international tensions, trade wars, and armed conflict.
Learn More with EXIMA
EXIMA is here for all global importers and exporters and has resources for everything international trade-related. To learn more about our exclusive offers, make sure to check out our site today!
