Risks of Exporting
Author: Youth 2 Youth.
There are many risks for exporters.
If you don't carefully monitor your
planning and operations you can find
yourself in some hot water. This
article examines the different kinds
of risks you may face, to make you
aware of what to monitor.
Political Risk
Some countries, particularly developing
nations, may experience major political
instability. This can often result in
defaults on payments, currency
fluctuations, etc. The Department of Foreign Affairs and Trade, Austrade and the Export Finance and Insurance Corporation (EFIC) continually monitor the effects of political changes on Australian businesses. Contact them if you have any concerns.
Financial Risk
Protect yourself by using secure and reliable payment methods. Your bank or financial institution can advise you on suitable methods, which may depend on the location of your market. You can also have background checks done on your potential clients through The Export Finance and Insurance Corporation (EFIC). Get comprehensive insurance.
Legal Risk
The law is never the same everywhere, so be aware of the law in your markets. Law can impact on import procedures, taxation, employment practices, currency dealings, property rights, the protection of intellectual property and agency/distributorship arrangements. Speak with you lawyer or Austrade about your requirements overseas.
Government Contacts:
- Australian Trade Commission (Austrade) www.austrade.gov.au
- Australian Capital Territory Chief Ministers Department - www.business.act.gov.au
- New South Wales Department of State and Regional Development - www.business.nsw.gov.au
- Northern Territory - www.nt.gov.au
- Queensland Department of State Development - www.sd.qld.gov.au
- South Australian Department of Industry and Trade - www.dit.sa.gov.au
- Tasmania Department of State Development - www.dsd.tas.gov.au
- Victoria State and Regional Development - www.dsrd.vic.gov.au
- Western Australia Department of Commerce and Trade - www.dct.wa.gov.au
Useful Contacts:
Australian Export Online (searchable database of businesses) www.export61.com/psearch.asp
