Strategic Trade Risk Mitigation Solutions

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Adam Smith Associates Pvt. Ltd.

• A Global Trade Finance Company

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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
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Structured Trade Finance - What Does It Mean?
Adam Smith Associates Blog August 2, 2017
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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
Are you about to enter the domain of
international trade and expand base in India?
If yes, it is imperative for you to know about
the variegated challenges you might have to
face. To name a few, politics, law, finance and
more, can affect your venture. With tonnes of
responsibilities to shoulder, you may find it
hard to concentrate on the trade risks and their
solutions. In such circumstances, a trade
finance company can come to your assistance.
The professionals can not only tell you about
the potential risks, but also advise you in
trade risk mitigation planning.
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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
Here are 4 mitigation strategies to look into.
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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
Decide on an apt business partner Your business
partner in India is your support in an unknown,
foreign territory. Choose a partner, which has
professionals, who are familiar with the
business practices, culture and regulations in
the host country. Remember, a strategic
alliance, with the right collaborator can
provide you with a sound idea about your target
market. From document filing to obtaining
permits and registering the business, your
partner may assist in a wide sphere of necessary
actions.
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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
Evaluate the political environment Changes in
the political landscape of India, a developing
economy, may destabilize the import/export
policies and foreign exchange rate. Also, such
changes can usher in the collapse of the entire
system. This includes a massive transformation
in the legal and security environment bringing
about disruptions in trade. Conduct a thorough
research of the political background before you
make your decision. The trade risk mitigation
strategies that follow, curtail the
probable losses that can unbalance your business
plans.
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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
Design an effective business model India is a
vast country with diverse geographic features and
market segments. Therefore, creating a business
model catering to the demographics is a
necessity. You may opt for a multi-part model
with tailored strategies to suit the demands of
each region. For this purpose, factor in the
aspects like, social, economic and cultural
differences, that influence the business
environment. The model should elucidate all the
indirect and direct costs including tariff and
duty calculations, shipping methods,
protectionist laws, etc.
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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
Design an effective business model One of the
most significant determinants while creating a
business model is understanding what the
customers want. Try to learn about the market
demand, so that you can focus on offering exactly
what the people are looking for. For instance,
whether the customers are inquiring about
premium or basic products should be assessed.
Once you have an in-depth perception, you can
steer clear of supply chain disruptions.
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Strategic Trade Risk Mitigation Solutions
Adam Smith Associates Blog August 16, 2017
Prepare an alternative plan Lastly, devise an
exit plan. Anything may happen - a flood, a
political turmoil or infrastructural issues
resulting from them. Therefore, while planning
the model, you should make a calculation of the
losses that you might incur in your venture.
Establish and track the metrics That measure
your failure or success level, and establish
objectives accordingly. The associated risks
of establishing trade relations with India are
numerous. Recognizing them through careful
market scrutiny and venturing to opt for trade
risk mitigation strategies reflect the attitude
of a successful business owner.
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Disclaimer
Adam Smith Associates Blog July 15, 2017
We empower our clients by providing values added
services that benefits them with the right
knowledge and boosts their business decision on
Domestic and International Trade. To provide
the best, we tie up with leading technical
analysts in India to offer latest Relevant
updates on currencies, commodities, domestic and
internal stock and commodity indices and special
reports on internal treasury, crude and many
other related subject to enable your decision
making. While the intention of this blog is to
offer this wholistic view to our website visitors
and clients, the information contained on blog
is for general information purposes only. dam
Smith Associates assumes no responsibility for
errors or omissions in the blog contents.
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