Selling International on Open Account

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Selling International on open account

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Selling International on Open Account

  1. 1. Selling International<br />On Open Account<br />
  2. 2. Why Sell International?<br /><ul><li>Ready Market
  3. 3. Sales = Profit
  4. 4. Increased Product Life Cycle
  5. 5. Minimize Domestic Downturns</li></li></ul><li>Selling International<br />Purpose<br /><ul><li>Manage Resources
  6. 6. Manage Risk
  7. 7. Manage Cash Flow</li></li></ul><li>SellingInternational<br /><ul><li>Customer Risk
  8. 8. Country Risk
  9. 9. Flexible Terms
  10. 10. Problem Resolution</li></li></ul><li>Selling International<br />Customer Risk<br />Same as Domestic<br /><ul><li>Legal Name
  11. 11. Related Companies
  12. 12. Authorized Signers
  13. 13. Time In Business
  14. 14. Financials
  15. 15. References</li></li></ul><li>Selling International<br />Sources<br /><ul><li>FCIB
  16. 16. D & B
  17. 17. Veritas
  18. 18. Coface
  19. 19. Euler
  20. 20. Local Presence</li></li></ul><li>Selling InternationalCountry Risk<br /><ul><li>Political
  21. 21. Monetary
  22. 22. Cultural
  23. 23. Experience</li></li></ul><li>Selling International<br />Political<br /><ul><li>Stability of Government and Policies
  24. 24. Trade Balances / Reserves
  25. 25. Government Interest in “your” Industry</li></li></ul><li>Selling International<br />Monetary<br /><ul><li>Monetary Controls
  26. 26. Hard Currency
  27. 27. Exchange Fluctuation</li></li></ul><li>Selling InternationalMexico<br />Currency<br />Sell @ per unit cost 100.00 Peso<br />Budget cost<br /> @ US $8.50 FX @ 10.50 89.25 Peso<br /> 10.75 profit<br />Actual cost<br /> @ US $8.50 FX @11.50 97.75<br /> 2.25 profit<br />lost 8.5% profit<br />
  28. 28. Selling International<br />Cultural<br /><ul><li>Meaning of Time
  29. 29. Ownership of Debt
  30. 30. Oral or written Contract</li></li></ul><li>Selling International<br />Country Risk Assessment<br /><ul><li>Bank Reports
  31. 31. Rundt’s Weekly
  32. 32. Periodicals
  33. 33. U.S. Foreign and commercial service reports
  34. 34. FCIB Country Reports
  35. 35. FCIB Credit and Collection Surveys
  36. 36. FCIB / Political Risk Reports
  37. 37. IMF
  38. 38. Country Agencies
  39. 39. World Bank
  40. 40. Colleges / Universities
  41. 41. Local / Regional International Groups
  42. 42. Local Agents
  43. 43. Export-Import Bank</li></li></ul><li>Selling International<br />Experience<br /><ul><li>Presence Direct / Indirect
  44. 44. Others in Same Industry
  45. 45. Others Broad Basis</li></li></ul><li>Selling International<br />On Going Project<br /><ul><li>Changes are Key
  46. 46. Continued Two Way Communication
  47. 47. Continued Evaluation and Revision</li></li></ul><li>Selling International<br />Payment Risk<br /><ul><li>Cash in Advance
  48. 48. Confirmed Letter of Credit
  49. 49. Letter of Credit
  50. 50. Documentary Collection
  51. 51. Open Account</li></ul>Least Risk<br />Most Risk<br />
  52. 52. Selling International<br />Risk Mitigation<br /><ul><li>Delay
  53. 53. Flexible Terms
  54. 54. Problem Resolution</li></li></ul><li>Selling International<br />Risk Mitigation<br />Foreign Exchange<br /><ul><li>Natural Hedge
  55. 55. Hedge Contract</li></li></ul><li>Selling International<br />Risk Mitigation<br />Payment<br /><ul><li>AVAL
  56. 56. PAGARE’
  57. 57. Personal Guarantee
  58. 58. Contract Tied to Security
  59. 59. Guarantee from Related Party
  60. 60. Credit Insurance
  61. 61. Forfaiting</li>

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