Market research helps you understand the risks of doing business in a particular country. You can then decide how you want to control those risks.

Initial 'desk research' in the UK is a useful start. You can read country profiles on the link2exports website - Opens in a new window. You can also read country reports and find overseas sector reports on the UK Trade & Investment website.

You should also check whether the UK has any agreement with the country to help reduce export risks.

You are likely to want to visit the country to learn more. Support and subsidies may be available through events and visits arranged by UK Trade & Investment.

Working with the right partners can also help you reduce the risks as you can benefit from their expertise and contacts. For example, you might work with a reliable agent or sell through a local distributor.

Reducing financial risk

Before agreeing an export deal, it's a good idea to assess the impact on your cashflow and make sure you have enough working capital. See our guide to cashflow management: the basics.

If your exports are capital goods or services they may also qualify for one of the insurance schemes provided by the Export Credits Guarantee Department (ECGD), a government department.

If you are trading in a foreign currency, you also need to protect yourself against foreign exchange risk. The amount you receive (in pounds sterling) could be lower than you expect if the foreign currency falls. You can protect yourself using forward foreign exchange contracts and currency options.

 

 

 

( liyy )13 Dec,2010

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