Risks for both importer & exporters when doing ‘International Trade’

The first question is that why and how ‘Supply Chain’ and ‘International trade’ come into practice. It was also exist before but now  every one adopting and doing practice.

There are lots of risk into international trade that I got it from my company’s suppliers. There are three mode of payments (1) L/C (2) T/T (3) Cash.In L/C many options like L/C at sight,L/C at three months and six months.

Most of Factories like T/T mode of payment.But many trading companies start business with placing orders in L/C at sight but later L/C with 3- months & six months.Factories also accept this kind of mode of payment to cooperate each other.

One of my Factory’s supplier told me that how a container stuck at importing country’s port and lost payment.

Factory accept order and shipped but his client didn’t clean custom’s and accept the container of goods. After that exporter thinking how to transfer and shift to other customers by lower price than before.

One of my Company suppliers told me that he sends goods to a country and when it arrived at destination port some rifles holder come to container and take it under control without paying any money.

There are lots of Customers and suppliers are very good with each other and some is not like that.

Many Factories take order from their clients on credit that after sales of their  products in their markets will return money to them.But it has been observed and listened from someone that after many reminders Factories didn’t get returned their money.

Every one wanted to start their own business but for this need good planning ,market research, reasonable prices which’s suitable for buyers, an acceptable quality ,an huge investment. A very important message and advise that for any Business honesty is very important with their employees, customers and suppliers.

The End.