Running head: IMPORT AND EXPORT

Import and Export

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IMPORT AND EXPORT
Most business people are concerned with improving the level of revenue they are earning

and minimizing the cost of their expenses as low as possible. The income will be maximized if

they enlarge the size of their market. Therefore, the demand for entrepreneurs to trade

internationally (Grimwade, 2000). The entrepreneur may market his products or services in the

web sites. They should be considerate of the following social, cultural factors that may hinder

them from selling in a foreign country. Consider the language factor. Their translation may have

a different meaning that may affect the selling of their product. Ensure they use the simple

language that will be understood by the potential customers in those filed.

International financing takes only two forms. That is a secured and unsecured form of

investment (Rivera-Batiz, & Oliva, 2003). The unsecured financing requires no collateral that is

no security to support the debt. The lender gives liability depending on the creditworthiness of

the person and based on promising to repay. If the client fails to repay, the lender uses the law

forced to take what is owed. Secured financing the borrower gives some assets as the security for

the loan. Therefore, in case of default, the lender can use the asset to repay themselves. The

interest rate of the secured debt is lower than that of unsecured, and most of the consumers prefer

using secured financing since it has less risk.

Where carrying out the international market, the entrepreneur exposed to face some risks such as

credit risk. It is the risk associated with not receiving payment after carrying out a transaction.

This risk can be controlled by ensuring they collect the full amount before rending the services.

Secondly, transacting using the letter of credit where the financial institution will pay

immediately after the delivery of the services. Intellectual property risk. This risk is when other

traders use the symbols of another company authorized to trade. It can be avoided by registering
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IMPORT AND EXPORT
all the trademarks and the name of the property before signing any agreement in the foreign

market.

REFERENCES

Grimwade, N. (2000). International trade: New patterns of trade, production & investment.

Psychology Press.

Rivera-Batiz, L., & Oliva, M. (2003). International trade: Theory, strategies, and evidence.

Oxford University Press on Demand.