After Studying The Fourth Session Topic On Exports And Reviewing The Additional Material, Consider The Role Of

Political risks include changes in government regulations, trade barriers, and geopolitical tensions.

These risks can impact the demand for products, increase costs, and disrupt supply chains.

b. Legal and Regulatory Risks

Exporting requires compliance with various legal and regulatory frameworks, both domestic and international.

Companies need to navigate complex export control laws, customs regulations, and trade agreements.

Failure to comply with these regulations can result in fines, penalties, and reputational damage.

c. Logistical Risks

Exporting involves managing complex logistics, including transportation, customs clearance, and documentation.

Delays, damage, or loss of goods during transit can lead to financial losses and customer dissatisfaction.

Companies need to ensure efficient supply chain management and have contingency plans in place to mitigate these risks.

d. Financial Risks

Engaging in export activities often involves dealing with foreign currencies, which exposes companies to exchange rate fluctuations.

Companies may face currency devaluation, which can erode profit margins or make products more expensive for customers.