International business is risky and lucrative at the same time. Sometimes the risk costs you everything and you fail, but success is sure only if the risk is taken with planning and a strategy. In this article, we’ll discuss the possible risks and solutions. So let’s start.
Business is the best way to grow financially and personally but it involves a lot of risks. It is just because of risk that many of us have an idea but we don’t pursue it. People who choose a safe 9-5 job rather than business are not wrong because it takes a lot of courage to start a business and lot of smart and hard work to make the business work.
Now since import and export is a category of business, it also has its own share of risks. We are going to see what kind of risks are involved in import and export. How many categories of these risks are?
- Political Relations Influence Risks
Every time there is a change in the regime of the country the first business to be impacted is import and export. In case the new ruling government doesn’t have good relations with your current ruling government, they can even ban import and export.
- Cargo Risks
These are the worst kind of risks. They are known as transportation risks. That can occur due to natural disasters or product spoilage.
As you can see I’ve given few pointers only for export risks. There are risks involving import business too, but it has almost same risks as for export with few exceptions. All the risks mentioned have solutions, these solutions lie in International business studies, Law Studies, Finance Studies, and Political Studies. So now you are wondering if you have to study all the subjects to find possible solutions to export risks. The answer is, not necessarily if you can have Import Export Business Training. You can opt for special courses which are completely dedicated to import export studies like for Import Export Business training in India you can get courses at Export Import Academy. They are the pioneers in this field. Their courses cover all the possible subjects and topics essential for import export business. So go ahead and make your own research.
- Commercial Risks
These risks can be related to supply and demand. It could occur due to rigid business strategies or inadequate knowledge.
- Product Price Risks
Product price is always at risk unless you have a monopoly of the product. Your product price is subjected to risk if someone else starts the same product import export or the country you are exporting to starts its own manufacturing for the product.
- Fluctuations in the Currency
Currency value change can impact a lot your export business as it changes the whole infrastructure the import export business is based on.