Global commerce is a risky business. You would check for shark signs before jumping into the ocean, right? The same can be said for when you’re considering taking your business global. With access to conducting business in foreign countries becoming easier and more pronounced every day, many businesses see dollar signs before warning signs. The good news is that there are reputable investigative companies that can assess global commerce risks before you take the plunge, and we’re here to share with you why you should let us take the reins.
Global commerce has connected countries in ways our ancestors could never have dreamed of, but taking business that could be done on home soil overseas is a tough hurdle to get ahead of. Hefty taxation, environmental permit struggles, and even political risks are all things that can be faced by any company, large or small.
When we evaluate your business and the risks associated with global commerce, we look at a wide variety of factors. Would you be concerned about signing a deal to, for example, lock in a cost for a bulk order of your product, only to find out the buyer refuses to pay? Would you be able to wade through a different countries’ legal system in attempts to collect? This is a real concern: several countries have airtight legal defenses against lenders. Everything from large companies such as Enron, to small clothing companies exporting to Jamaica, have faced this concern and rarely won.
Commodity pricing is also an enormous risk when working globally. What might sell for hundreds in the United States sells for pennies on the dollar in another country. Many businesses lack the tools to be able to assess commodity pricing on a widespread scale, while companies who specialize in such risks can see a broader picture. To further complicate things, how you get your products to a global stance can double down on commodity concerns. Is containment an issue for your business? It might be.
Financial risks are the greatest and biggest hurdle to work through when it comes to global commerce. Tying into commodity pricing concerns, your company will need to be able to handle differential tax rates, import licensing, and even theft insurance (amongst a litany of other concerns). These aren’t light issues like what color to paint the walls, they’re potentially huge blockades to the success of your business. Global commerce is quite literally big business, and having a professional look at where you stand in it might be the difference between thriving and starving.
At Summit-Tek, our goal is to help you be fully informed. We complete a thorough risk assessment which identifies threats to your global business. These may be internal threats stemming from hiring personnel or subcontractors or external threats such as potential terrorism, counterfeiting and theft concerns. We look at your supply chain and at your practices tracking and monitoring shipments to determine your vulnerabilities and shore up your weaknesses.