Foreign payments
6 important questions on Foreign payments
Outside your own currency area, we distinguish two situations. Which?
- Countries with set exchange rates that seldom change value
- Countries with floating (fluctuating) exchange rates
What are factors that determine your choice of payment method?
- Size of non-payment risk
- Cost of payment method
- Length of the payment process
- Quality of the relationship
- The complexity of the payment method
- The distance to the buyer
- The culture of the country
- The market (competition)
- The political and economic situation in a country
- The requirements of banks and insurance companies
The "hassle" with foreign payments is probably the most challenging part of the export experience. Why?
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What are the 3 most commonly used methods of foreign payments?
What is currency hedging?
What are the types of currency risks?
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