Ready MarketSales = ProfitIncreased Product Life CycleMinimize Domestic Downturns

Purpose

Manage ResourcesManage RiskManage Cash Flow

Customer RiskCountry RiskFlexible TermsProblem Resolution

Same as DomesticLegal NameRelated CompaniesAuthorized SignersTime In BusinessFinancialsReferences

Customer Risk

FCIBD & BVeritas

CofaceEulerLocal Presence

Sources

PoliticalMonetaryCulturalExperience

PoliticalStability of Government and PoliciesTrade Balances / ReservesGovernment Interest in “your” Industry

MonetaryMonetary ControlsHard CurrencyExchange Fluctuation

CurrencySell @ per unit cost 100.00 PesoBudget cost @ US $8.50 FX @ 10.50 89.25 Peso

10.75 profit

Actual cost @ US $8.50 FX @11.50 97.75

2.25 profit

lost 8.5% profit

CulturalMeaning of TimeOwnership of DebtOral or written Contract

Country Risk AssessmentBank Reports

Rundt’s Weekly

Periodicals

U.S. Foreign and commercial

service reports

FCIB Country Reports

FCIB Credit and Collection Surveys

FCIB / Political Risk Reports

IMF

Country Agencies

World Bank

Colleges / Universities

Local / Regional International Groups

Local Agents

Export-Import Bank

ExperiencePresence Direct / IndirectOthers in Same IndustryOthers Broad Basis

On Going ProjectChanges are KeyContinued Two Way CommunicationContinued Evaluation and Revision

Payment RiskCash in AdvanceConfirmed Letter of CreditLetter of CreditDocumentary CollectionOpen Account

Least Risk

Most Risk

Risk Mitigation

DelayFlexible TermsProblem Resolution

Risk Mitigation

Foreign Exchange

Natural HedgeHedge Contract

Risk Mitigation

AVALPAGARE’Personal GuaranteeContract Tied to SecurityGuarantee from Related PartyCredit InsuranceForfaiting

Payment