Tips to Minimize Foreign Trade Risks

International trade can bring various benefits, but it also poses significant risks of its own. Thus, if you are trying to go global, there are certain risks that you must look out for. Here are our top four tips that can help businesses mitigate foreign trade risks: 

Receive Help From Expert Consultants 

Before going to a new country, you should always consult your plans with business experts. They can help you negotiate deals with established stakeholders and give you a head-start. 

Legal consultants will help you better navigate custom policies, the country's laws on trade, and other legal matters. You will need advice regarding your expansion to avoid violating intellectual property laws. That is also the main reason why you need experts to guide you, especially if you are doing business in a foreign country for the first time. 

Review Restrictions and Product Acceptability

All countries have their own set of rules and protectionist policies that you must abide by. For instance, Saudi Arabia prohibits the importation of weapons, alcohol, narcotics, and pork. China has also recently passed a new law restricting sensitive exports like military, civilian, and nuclear products and all products and technologies related to national security. 

Product acceptability is also another issue. If you are considering doing business with an EU food market, review the EU's list of approved non-EU countries that can export a specific category of food.

Be Careful of Currency-Related Issues

Currency and banking issues may often lead to immediate catastrophic effects on business operations. In fact, in the fourth quarter of 2016, 245 out of 850 US businesses surveyed stated that they had experienced negative currency impacts. Common problems with currencies include inconvertibility of the currency, transfer and devaluation risks, expropriation, and more. Always do thorough research beforehand to avoid any issues.

Understand Shipping Procedures and Foreign Trade Policies

A majority of importers and exporters use waterways to transport items. Thus, you must be familiar with the different shipping lines, customs clearance, transport of goods, and other logistics. 

Also, during international shipping, issues such as damaged or lost items, contamination, theft, and accidents may arise. As a result, insuring your goods is a must. Ask your insurer about the different options that are available, and try to get a deal that covers as many insurable aspects of your business as possible.

Stay in the Loop with Export Portal

Export Portal realizes the importance of international trade and has made many efforts to create a secure space for businesses to complete global trade transactions. For more information, make sure to check out our site today!