Payment and Finance
A key component of the course is developing the concept of how, in order to insure that you will receive payment, you - the seller - will need to assess all of your risks. For your domestic sales, if the buyer has good credit, payment is usually made on open account terms-if not, cash in advance is required. For export sales, these same methods may be used. However, when dealing internationally, getting credit information on your foreign buyers is a little more difficult. In addition to the credit risk, because this is an international transaction, you'll also need to address exchange risk - in what currency is the payment going to be made? Will the buyer encounter any difficulty in being able to transfer payment to you, and last but not least, you need to assess the political and economic risk of the country you are exporting to.
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