Archive:Buyer's Risks/Facilitating External Financing - Revision history

wikademia>Wikademia: moved Buyer's Risks/Facilitating External Financing to Archive:Buyer's Risks/Facilitating External Financing

2009-05-27T05:57:41Z

moved Buyer's Risks/Facilitating External Financing to Archive:Buyer's Risks/Facilitating External Financing

← Older revision		Revision as of 05:57, 27 May 2009
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wikademia>Wikademia at 22:08, 10 April 2009

2009-04-10T22:08:18Z

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	~~==Facilitating External Financing==~~
	To understand the risks of external financing, the following questions need to be asked:		To understand the risks of external financing, the following questions need to be asked:
	*What is external financing?		*What is external financing?

wikademia>Wikademia: Text replace - 'Category:International Business' to 'Category:International business'

2009-04-09T05:07:54Z

Text replace - 'Category:International Business' to 'Category:International business'

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wikademia>Wikademia at 04:47, 8 April 2009

2009-04-08T04:47:43Z

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	~~{{TF4.2}}~~

	==Facilitating External Financing==		==Facilitating External Financing==
	To understand the risks of external financing, the following questions need to be asked:		To understand the risks of external financing, the following questions need to be asked:
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	<div style="float:right;">[[Buyer's Risks/Ensuring Timely Payment\|Prev]] \| [[Buyer's Risks/Summary\|Next]]		<div style="float:right;">[[Buyer's Risks/Ensuring Timely Payment\|Prev]] \| [[Buyer's Risks/Summary\|Next]]

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	[[Category:International Business]]		[[Category:International Business]]

wikademia>Wikademia: 2 revisions

2009-04-08T04:17:47Z

2 revisions

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24.11.195.94 at 13:46, 28 September 2007

2007-09-28T13:46:56Z

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	*US State Department – Country Reports		*US State Department – Country Reports

			<div style="float:right;">[[Buyer's Risks/Ensuring Timely Payment\|Prev]] \| [[Buyer's Risks/Summary\|Next]]
	[[Category:International Business]]		[[Category:International Business]]

wikademia>MSUglobal: New page: {{TF4.2}} ==Facilitating External Financing== To understand the risks of external financing, the following questions need to be asked: What is external financing? How can it be viewed ...

2007-09-25T19:32:38Z

New page: {{TF4.2}} ==Facilitating External Financing== To understand the risks of external financing, the following questions need to be asked: *What is external financing? *How can it be viewed ...

New page

{{TF4.2}}

==Facilitating External Financing==
To understand the risks of external financing, the following questions need to be asked:
*What is external financing?
*How can it be viewed and understood?
*How does CAMEL play a role in external financing as it has been described above?
*What are the issues and factors that need to be considered when determining external financing?

The answers can be grouped by both commercial and political risk categories as discussed below.

===Commercial Credit Risk===
*Nature of the business
*Financial strength of the buyer
*Nature of the relationship with the buyer--new buyer or a frequent customer, dealer/distributor, or a subsidiary/affiliate
*Buyer’s record of meeting local and international payment obligations
*Ownership of buyer, private or public sector
*Potential loss if shipment is not accepted:
**value of the shipment (marginal pricing concept--cash invested in the goods, high or low profit at the margin)
**types of goods , perishable or specially manufactured where total loss might result if shipment were refused
**likelihood of shipment being refused-- a change in market conditions for commodity shipments may induce buyer to refuse shipment).

Sources of information to help companies identify commercial credit risk are:
*credit reports from independent agencies, banks, etc.
*customer-supplied financial data
*industry intelligence

===Political Risks===
*Political conditions in buyer’s country
*Stability of the local, state and federal governments
*Possibility of import license cancellation, or other unexpected actions that would result in the non-acceptance of the shipment
*Possibility of coup, civil disturbance, etc.
*Possibility of change in foreign exchange regulations that could delay or disrupt payment

===Economic Risks===
*Economic conditions in buyer’s country including expected and recent changes
*Economic trends-- inflationary, recessionary, etc.
*Currency exchange control regulations
*Currency flow regulations
*Country’s balance of payments

Sources of information to help companies identify political and economic risks are government and private agency intelligence reports including the following:
*Chase World Guide for Exporters
*Chase Econometrics Country Reports
*International Monetary Fund Data
*World Bank Data
*CIA World Fact Book
*US Department of Commerce – Country Commercial Guides
*US State Department – Country Reports

[[Category:International Business]]