Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace

Markets for export credit coverage are more limited

than for political risk and require specific underwriting de-

tails about the creditworthiness of the buyer and the pay-

ment track record. Obtaining this insurance is often a tool

for increasing foreign sales, because account receivables

are protected and banks are more apt to provide lucrative

export financing.

LOSS CONTROL

Insured parties should seek measures to minimize op-

portunity for loss and to entice the interest of local busi-

nesses. Such measures include the following:

• Utilization of local management, personnel, etc.

• Development of sales that require continuing support,

such as providing service, maintenance, spare parts, ac-

cessories, etc.

• Development of rapport with local officials ...