IMPORT AND EXPORT   

    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 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.