Overseas ProjectsFinancial Aspects

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COSTING
Factors to be considered

The price that competitors in international markets are already charging. The cost of manufacturing, distributing and marketing the product. Fluctuations in foreign currencies. The price that the international consumer is willing to pay for the product.
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Financial Risks Involved

Foreign Exchange Rate Fluctuation Credit Risk Difficulty to assess the creditworthiness of an overseas client and to recoup unpaid debts.

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Managing Risk

Forward contracts Cash-in-Advance Letters of Credit Documentary Collections Open Account

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Methods of Payment

International Wire Transfer Banker's draft International Cheque Credit Card Merchant Account Foreign Bank Account Payment Gateway (Eg. PayPal)

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References

www.investopedia.com www.businesslink.gov.uk www.marketingteacher.com

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