Easily Manage All Kinds of Risks in Exports | Any Origin

Hello students. Welcome to this important course on how to easily manage all kinds of exports related risks which comes with exports deals, transactions and all operations related to exporting and importing.

Friends, a great amount of diversity exists in this world from the point of view of political, cultural, technological, financial, legal and economic aspects of business environment on the planet. These differences create a larger amount of complications and complexity in carrying out global business operations and exports transactions. These complications and complexities generate various kinds of risks for both exporters as well as the importers of goods and services. These risks needs to be understood and managed professionally. The objective of this course is to make you conversant with many of the types of such risks and tips and techniques to manage those risks. The subsequent videos in this section deals with these aspects of exports related risk management.

Course Plan and Topics are Listed in this session

Hello friends Welcome to this VJ Exports Mastery Series Course titled: All Exports Risk Management: Any Country of Exports. Friends, this course is devoted to all types of risks which are associated with international transactions. And as you know that international transactions are based on very large distances between the exporter and the importer, differences of legal systems laws and regulations, differences in culture, differences in the languages and the knowledge and specifications and standards and practices.

So, Friends This world is full of diversity, this world is full of differences and the cities and the towns are logistically very far off from each other and air transportation is costly. So, friends, what happens due to these distances, due to these time lags, due to this different understanding, due to the different laws and the practices, there erupts several types of risks, which can result into losses to the exporter or the importer or any of the agencies which are involved in any export transaction.

These risks also include the differences in the currencies and the fluctuations in the comparative rates between the different currencies of the world. So Friends, this complex world of business, this complex world of export transactions. This complex world of international logistics and transportation management, is full of risks and the risk of different types I am going to discuss in this course, and I will also discuss the nature of these risks and what is the meaning of these risks and how you can reduce these risks. How you can manage these risks.

Global trade has made life easier for the people even in the remotest parts of the world. It has made finding solutions of day to day life of the people around the world, more affordable and more inclusive.

So friends, let us first look at what is international trade. So, friends international trade is the exchange of goods and services between countries between the buyer and the seller, between the different parties, which are located in different countries. So, this exchange of goods and services between the different parties, which are located in different countries, this kind of trade gives rise to the so called global economy, the world economy in which friends, The prices or the supply and demand affects, and are affected by the global events. So, a lot of things are happening in the world, politically, economically, technologically, financially, legally, so, many events are taking place, in this world, on this planet, at different corners of this planet. So, all these events, all these announcements by different governments, all these maneuvers by different world governing bodies, all these things impact the supply and demand of the goods and services as well as their prices. So, friends, what does this international trade signifies, what does it do to the day to day life of the consumers or the business of the entrepreneurs or the people who are involved in domestic as well as international business.

Friends, the biggest importance of the international trade is that it provides goods and services to the people around the globe, even to the remotest areas. So, the motivation to earn money and make profit motivates the different types of global businessmen to make different types of goods and services and the consumer solutions available to everybody in any nook and corner of this world and friends, secondly, international trade provides increased employment. So, a lot of research has been done on this aspect. And it has been found that the growth of international trade is larger than the growth of the GDP of the world economy. So, what is the meaning of this that the trade growth exceeds the production growth, which means the more trade is happening, then the production is happening. So obviously, the employment is being generated by international trade more than the production of goods and services. So, in addition to the employment provided by the production of the goods and services, international trade, provides the much-needed extra employment and helps the people to earn money for their living around the world.

Thirdly, friends, international trade drastically controls the cost of goods and services. So, for example, if you look at what has happened in last one or two decades, in the consumer goods and even engineering sector, you will found that the latest goods and services, latest solutions for the customers being produced in countries like China, Vietnam, Taiwan, and many of the ASEAN countries are able to bring down the price of the goods and services for the common consumers so that their living standards are increased, they have been able to find solutions to their day to day problems at a much affordable prices. And this whole production of goods and services in these manufacturing hubs have really helped bring down the cost and make life easier for the people around the world. Fourthly, friends, international trade makes an organization global. So, what is the meaning of this?

When an organization becomes global, it reaches places, it learns new things in different markets. It gets new technological knowledge, market research, market knowledge, it understands the different type of needs by being global and thereby it adds better value to the consumer. So, there is no doubt friends that because of the international trade, our day to day life is becoming much more comfortable, easier and our living standards are increasing rapidly

Deviations from the expected return on investment in any business activity, or loosing part or the entire amount of the investment is referred to as the risk.

So Friends, the fact still remains that the international trade is really useful for the consumers as well as for the business people and for the economy of the world as well as of the economy of the local governments and local places. But friends, what happens, due to the difficulties associated with doing international trade, due to distances, due to differences in the culture and the legal system and the practices, friends, what happens?

The risk of losing money by the people who are involved in this international trade, the people who drive this international trade, they are sitting on different types of risks. Now, what is this risk? let us try to understand that what is this risk? So, friends this risk in a very simple language is defined as the chance that the actual return on the investment will be not the same as what was expected by a person who put all the efforts for carrying out the international trade, the person who made these goods available in every nook and corner of this planet by taking so much responsibilities and different types of challenges, facing so many challenges and putting hard work.

The kind of expected return, which is normally expected from the investment is , if not realized, that is what we call as risk and Friends this risk includes the possibility of losing either the part of the investment and sometimes even the complete investment, the entire value of the investment. Many a time, if invested in certain export shipments of the movement of goods from one country to another country Sometimes it happens that the entire investment is lost. So, the quantum of this risk can be mild, it can be medium, and it can be very, very high also.

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