So, speaking about financing international trade... it also comes a time when, after financing something and going overboard with confidence, we have to also make sure that the financing comes back. I am talking about clients paying late (or defaulting completely), of course, something that is extremely complex in international transactions that are not expensive enough to start legal proceedings in a foreign jurisdiction (cost-benefit analysis with the cost of legal counsel, trips and time value of money). The key phrase is "carrot and stick" - always make sure you have something to either attract with or hit with. But, most importantly, make sure that you always do business with partners with whom you want to build a relationship. In that case, getting over such issues becomes something positive, a hurdle that has to be overcome together, and once overcome, it will make the relationship stronger, it will make you understand each other's ways better and work better together.
Of course, the ideal would be not to get there, and the key word for this is business intelligence - the far reaching effects of good business intelligence in international trade and the role of technology in this. I am presently on my way to Singapore in order to collect, and I will try to use this experience in order to outline a bit the points mentioned here above. I hope y'all have some fun, 'cause I sure as hell am not!
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1 comment:
Hi George,
Did you manage to collect? Great articles by the way.
Michelle Davy
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