Exporters typically prefer conservative measures when managing foreign receivables What are the reasons for this conservativism?
Conservative decisions are quite typical in the realm of financial operations for numerous reasons, the high possibility of a failure as a result of the lack of proper testing being the key factor. The specified line of reasoning is especially evident in the process of managing foreign receivables. By definition, the process mentioned above implies significant risks, which are covered by the Export Receivables
Guarantee (“Export Receivables Guarantee,” 2017). Therefore, following the suggested set of steps and complying with the offered guidelines seems sensible. Furthermore, the opportunities guaranteed by the Export Credit Insurance (ECI) and the options for reducing the amount of finances invested in foreign receivables should be listed among the key factors defining the choice of conservative measures in managing the subject matter (Salcic, 2014).
What services does GT Nexus provides to international supply chain communities?
In the realm of the contemporary business environment, the management of resources, in general, and information, in particular, is what defines most of a company’s success. By acquiring, analyzing, and transferring essential data successfully and quickly, an organization is likely to deliver the services of the finest quality to its target population. Therefore, the fact that GT Nexus focuses extensively on using the Big Data as the means of spurring the processes occurring within its supply chain warrants the title of the future of the global trade. In addition, the focus on using a cloud-based network as the means of introducing a cost-efficient strategy into the process of managing the organization can be regarded as a sign that GT Nexus is experiencing significant growth. By incorporating the latest technological advances into the process of data management, the firm will be able to increase its competitive advantage, thus, becoming the leader of the industry (Grath, 2016).
What are ways that a company can protect itself from fluctuating exchange rates?
Currency fluctuations as one of the key external factors of the global economy realm have a tangible impact on the performance of an organization. Changes in currency rates affect the financial well-being of a company considerably, thus, jeopardizing its chances to retain a high position in the target market. Despite the rather unstable nature of currencies, a company can protect itself from rapid changes and possible economic collapse by using futures. Defined as a contract that a company makes to buy a particular asset, futures serve as the means of leveraging the high levels of uncertainty by which the global market can be characterized. As a result, an opportunity to design a sensible risk management strategy for a company is created. Furthermore, the tools for a successful exit strategy can be identified. As a result, a firm may feel more secure in the realm of the global market.
What are the institutions involved in international banking and having a function that is linked to international payments?
With the recent technological breakthrough, international banking has become a common element of everyday life for a number of people. International payments, in turn, are also quite common because of the opportunities to carry out financial transactions among companies across the globe. International payment systems, however, are quite few and, therefore, have a set of unique qualities. American Express is one of those companies; providing safe and secure transfer of money, it creates extensive opportunities for payment worldwide (“Grow global with American Express OPEN,” 2017). Similarly, Western Union gives a chance to carry out financial transactions, particularly, money transfer, in the realm of the global economy. Adding new revenue streams to the process of transfer is one of the unique opportunities that the company offers and that set it aside from similar organizations (“Payment considerations,” 2017). Finally, AXIOM FX should be mentioned among the firms that deliver the services linked to international payments. The firm is known for its hedging options (“International payments,” 2018).
References
Export Receivables Guarantee. (2017).
Grath, A. (2016). The handbook of international trade and finance: The complete guide for international sales, finance, shipping and administration. Philadelphia, PA: Kogan Page Publishers.
Grow global with American Express OPEN. (2017). Web.
International payments. (2018). Web.
Payment considerations. (2017). Web.
Salcic, Z. (2014). Export credit insurance and guarantees: A practitioner’s guide. New York, NY: Springer.