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Ch 4 – Obstacles in International Trading

Ch 4 – Obstacles in International Trading. Bab 4. Why Trust is Important?. Each party is not familiar There are risks involved Problems in distance Different law. What You Can Do?. Ensure trade partner’s credibility Seeks reference from friends, diplomatic channel, business

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Ch 4 – Obstacles in International Trading

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  1. Ch 4 – Obstacles in International Trading Bab 4

  2. Why Trust is Important? • Each party is not familiar • There are risks involved • Problems in distance • Different law

  3. What You Can Do? • Ensure trade partner’s credibility Seeks reference from friends, diplomatic channel, business association, etc. • Use safest method of payment

  4. PAYMENT PROBLEMS Cash: TT (with options of procedures) and Open Account Consignment LC (Letter of Credit)

  5. Examples of LC request

  6. 2 Simple Tips • Use irrevocable LC at sight • Ask for down payment. Sometimes, they can still “tricky”

  7. Barriers of Law • Not every object is eligible for sale: Example: Japan-made armory • Cooperates within your business association: G to G meetings

  8. Capital Barrier • Solution: • LembagaPembiayaanEkspor Indonesia (LPEI) • Asking for down payment

  9. Language Barrier • Solution: Use professional translator

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