Politics Laws and Research

Go to the Export-Import Bank of the United States’ Website and review the section titled, “Export Credit Insurance”, located at http://www.exim.gov/products/exportcreditinsurance/index.cfm. Next, read the article titled, “Be careful: Here are the top 5 business risks for 2015,” located at http://www.propertycasualty360.com/2015/01/14/be-careful-here-are-the-top-5-business-risks-for-2?page=7&page_all=1. First, speculate on the effects of the Export-Import Bank products on global trade. Second, select one (1) of the primary risk factors for the next five to ten (5-10) years that were mentioned at the end of the article. Then, recommend one (1) product or service from the Export-Import Bank to address the selected risk and provide a rationale for your recommendation.

Watch the video titled, “Costs and revenue opportunities associated with risk in the technology industry”, (2 min 38 s) located below. You may also view the video at http://youtu.be/6la2BKzvppQ. Examine the major technology risk factors for different sizes of businesses. Provide one (1) example of a problem factor and suggest one (1) strategy to resolve the issue.

Hello Professor and Classmates!

The Export-Import Bank plays a critical role in the successful global trade of products starting from the U.S. to overseas. The bank offers small businesses the ability to extend credit terms to foreign customers, covers both commercial (bankruptcy) and political (war or the inconvertibility of currency) risks, bank loans, etc.

Nowadays it hard to predict what could take place with politics. The primary risk factor over the next 5-10 years “Changes in legislation and regulation” would be covered in the Export-Import Banks product Express Insurance. The Express Insurance specifically insures against political (i.e. war or the inconvertibility of currency) risks. I recommend this product because it aids in the reduction of loss for the buyer’s inability to make a payment. The Express Insurance recovers 95% of the losses to the seller. The Express Insurance also offers improved liquidity by speeding up cash flow by allowing the insured to borrow against foreign receivables.

The major technology risk factor for different sized businesses is the internet.

Megan Olivaria,

Resources:

http://www.propertycasualty360.com/2015/01/14/be-careful-here-are-the-top-5-business-risks-for-2?page=7&page_all=1&slreturn=1500752513

http://www.exim.gov/what-we-do/export-credit-insurance/express-insurance