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 type of

funding (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. This is the risk associated by not receiving payment after caring out transaction. This

risk can be controlled by ensuring they collect the full payment 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 uses the symbols of another company authorized to trade. This can be avoided by
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IMPORT AND EXPORT
registering 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.