Risks commonly encountered in the foreign trade process

1.National policy risk
National changes to the market, economic regulation will directly affect the import and export business, so we must pay attention to all aspects of national policy changes. Read more about the political situation in key development countries, news and industry dynamics, so as to make adjustments as early as possible.

2. Exchange rate risk
Changes in the exchange rate directly affect the value of our goods, corporate profits, so we need to pay attention to the changes in the exchange rate and control the price when quoting.

3. Credit risk
If it is a high-risk exporting country, we must purchase insurance for bulk goods and do credit investigation on the purchaser.

4. Transportation risk
For example: strikes, wars, price increases, etc.

5. Risk of receiving foreign exchange
For example: the payment method of each order must be determined according to the quality of the customer, and for countries with high risk, we must insist on using the payment method with high security factor.

6. Foreign trade fraud risk
If with the popularity of the Internet, foreign trade fraudsters more and more, some are telephone fraud, some are phishing mail fraud, so we must be vigilant. All kinds of possible fraud risks to collect and find ways to avoid. We are in the process of foreign trade business, the risks that often appear such as: phishing emails, fraudulent samples, customers run away, customers refuse to pay, etc., so every customer contact needs to be done.

Written by Vivi