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Your research into each overseas market, along with the opportunities, should also include careful assessment of the risks associated with doing business there.

As a product or service exporter, the main risks that you may face in overseas markets are:

  • political risk- how stable is the market politically, economically and socially?
  • legal and regulatory risk- what difficulties might arise from dealing with different legal and regulatory systems?
  • business risk- will you have to deal with different business and cultural practices that could cause misunderstandings or delays?
  • exchange rate risk- how will adverse movements in exchange rates impact your profits?
  • payment risk- what is the likelihood of your suppliers or customers defaulting or becoming insolvent?
  • intellectual property risk- how can you protect your designs or technology so it’s not stolen by an overseas competitor?
  • damage or loss of goods before payment- can you protect your products from loss or damage when being delivered by road, rail, sea or air?