经济类课件汇集_INTERNATIONAL MARKETING_Chapter 5 The Financial Environment

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

Commercial risk

Commercial 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

Political risk

Political Risk

Foreign Exchange risk ￥

Foreign Exchange Risk

Sources of Financing Commercial Banks Forfeiting and factoring Official trade finance Private sector export trade insurance

Sources of Financing – Commercial Banks – Forfeiting and factoring – Official trade finance – Private sector export trade insurance

Sources Commercial banks

Sources: • Commercial Banks