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Export : risks and insurance

Export : risks and insurance. 19/01/2010 – Rupee Team. Summary. Introduction Risks in exporting Assistance in exporting Export Insurance Golden Rules to be successful in exporting. Why exporting ?. Exporting : send and sell national products abroad Many reasons :

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Export : risks and insurance

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  1. Export : risks and insurance 19/01/2010 – Rupee Team

  2. Summary • Introduction • Risks in exporting • Assistance in exporting • Export Insurance • Golden Rules to be successful in exporting

  3. Why exporting ? • Exporting : send and sell national products abroad • Many reasons : • Increase the sales • Escape the saturation of the internal market • Reduce costs with a higher quantity • Acquire or consolidate the prestige of the firm • Spread the risks improve its competitiveness • Extend the life of older products • Deal with less restrective laws • Etc …

  4. Differents types of risks • Commercial risks : • risk of not being paid • Exchange rate risks • Risk of fluctuation between Euro and the currency used in the contract • Country risks • Political risks : war, unrest, new mesures on imports, … • Catastrophic risks : any disasters can affect the economy of the country • Risks of non-transfer : no payment to foreigner anymore • Legal risks : use the right terms in the contracts

  5. Country rating • Notation of country regarding • Political stability • Economical stability • Corruption • Attraction of investors • Etc … • 240 countries noted as a scale of 6 notes • AA / A / BB / B / C / D

  6. Where to find help to export • The support network mainly includes : • • Agency Ubifrance • • the DGCE, Directions Générales du Commerce Extérieur • • economic missions abroad • • Coface • • the network of CCI, Chambre de Commerce et d’Industrie • • the DRCI or Trade Chambers; • • Regions which also sometimes organize the Comités de développement chargés to make a synthesis among all these agencies at regional level.

  7. The first support list to the first needs • • Provide an update on its potential and its strategy for export • • Recruit staff for export • • Benefit from tax savings on investments for export • • Fund and ensure its presence abroad • • Participate in a salon • • Insuring against the exploration risk of failure • • Provide a tax provision when implanted abroad • • Protect yourself from the risk of non-payment • • Benefit from technical, legal and financial when you are exporting

  8. How to get an insurance contract? • With who? • COFACE (Compagnie Française d'Assurance pour le Commerce Extérieur) • Contract’s Objectives? • Incite companies to canvass foreign market (in order to develop an activity) • Protect them from non-payment with foreign purchasers • Protect investments from currency variation • Encourage them to invest despite disruptions

  9. How to get an insurance contract? • Types of contract • Assurance prospection: • Cover the spendings engaged for canvass foreign markets. • Canvassing requieres big foundings, with long term turnovers • COFACE gives compensatories until margins < spendings • Assurance Foire • Cover the spendings engaged for commercial events outside CEE • Assurance prospection normale • For precise actions (market analysis, advertizing, travels abroad…) and long term actions (3/10 years contract) • Precise projected costs required • Assurance prospection simplifiée • Global projected costs required

  10. How to get an insurance contract? • Assurance crédit: • Protect from non-payment with foreign purchasers of credit • Assurance change: • Protect investments from currency variation

  11. Golden Rules to succeed in exporting • Establish a strategy in exporting • Depends on the ressources, on the differences between the country, the geographical distance, etc … • Estimate the financial ressources • Significant investment in exporting • Selection of the market • Selection of the country and the most profitable target market

  12. Golden Rules to succeed in exporting • Being aware of cultural differences • Know the language, the way of living, thinking, habits of consumption, … • Be ready to manage the risks • Know the risk in exporting • Use external expertise • In order to have the right advices

  13. Thank You For Your Attention ! Questions ?

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