GROUP 1: RISKS INVOLVED IN TRADING

GROUP 1: RISKS INVOLVED IN TRADING INTERNATIONALLY AND MITIGATING MEASURES

I. Introduction and Definition
From Wikipedia: International trade is the exchange of capital, goods, and services across international borders or territories.
Easier: International trade means the exchange of goods and services between countries. And trading international activities are importing and exporting of goods, servives, capital, etc along international border. Our main topic for today is exporting. The increase in the export market is highly beneficial to an economy, but on the other hand the increase in imports can be a threat to the economy of that country. It has been the worry of the policy makers to strike the right balance between free trade and restrictions. Doing business internationally can involve different risks from those encountered domestically and will be influenced by the country you intend to export to. Exporting means more opportunities, but also entails greater risks. Although the environment for international trade has changed substantially over the years, the risks that exporters face when selling their products and services in other countries remain essentially the same. Here are some of the major risks firms doing business internationally can face.