Abstract
It is now known that a high proportion of exporting companies are unaware of, or unconcerned about, the financial risks associated with exporting. Even among those companies which have built some measure of risk control into their exporting activity, the perception of the risks involved can be narrow. A CBI survey in May 1989 revealed, for example, that most smaller companies thought that currency risks were the main problem. Payment risks were hardly mentioned. General lack of concern about the financial risks inherent in exporting was also confirmed recently by the low response to attempts by the Institute of Directors and the British Institute of Management to draw members’ attention to the problem. A few years ago, Midland Bank and the Simpler Trade Procedures Board quantified the losses which exporting companies incur when payment is delayed by faulty documentation. When payment delays occur, export credit insurance may expire, leaving the exporter open to an even greater risk — nonpayment.
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© 1991 Anthony Pierce
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Pierce, A. (1991). Maximising Profits — I. In: The European Marketplace. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11344-6_19
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DOI: https://doi.org/10.1007/978-1-349-11344-6_19
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-11346-0
Online ISBN: 978-1-349-11344-6
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