Import/Export Business Risk
The import/export process has a variety of elements which pose risk and a good manager will always assess both the internal and external environment; change is the new constant. The firm is represented overseas and brand reputation is at stake. Management must scan the environment for appropriate overseas sales representatives and distributors (Ball, 2010). If you think about it, the complexity of overseas business is astonishing. From communication to transportation to dealing with various cultures, international distributors act with greater independence than their domestic counterparts. In general, a new exporter's history, trademark and reputation may be unknown in the foreign market- hence putting reputation and relationship building at the forefront (Ball, 2010). Management must pick appropriate talent to handle such elements. It is highly recommended to conduct a personal evaluation of the personnel handling an account, the distributor's facilities and the management methods employed (Ball, 2010).
Reference:Ball, D.A., Geringer, J.M., McNett, J. M. & Minor, M.S. (2010). International Business: The Challenge of Global Competition. New York: McGraw-Hill.