Managing Risks and Challenges of Businesses into International Trade

Abstract

Globalization and doing business internationally have been great opportunities to entrepreneurs and business owners in expanding their operation. Operating globally will increase the exposure of the business in terms of branding, creating new investment, employment and tie-ups with other foreign companies. It is also an avenue for business owners to expose themselves to products and services that are not available in the country and can be sourced internationally. Likewise, International trade gives an opportunity between countries and business to business in exchanging goods and services. These activities are mostly affected by global proceedings and directly play a role in pricing, demand and supply. Despite these opportunities, there are underlying challenges and risks that need to be identified and addressed. The purpose of the study is to investigate the challenges and risks that are associated with international trading pertaining to international business structure, foreign laws, regulations and political risk, logistics and shipping methods, currency risk and payment methods, as well as cost calculation and pricing strategies. Other researches and secondary data were analyzed to have an in-depth understanding of the implication and how business owners can manage these challenges and risks.