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Sir there is a past exam question that

Discuss how risks arising from granting credit to foreign customers can be managed and reduced? (5 marks)

Sir is the following answer correct? Is their any point in it which is not valid OR do I need to explain any of the following points further?

Following are the ways by which risks arising from granting credit to foreign customers can be managed and reduced

1)Discounting bills of exchange: This is where exporter’s bank buys the bill before it is due and credits the value of the bills after a discount charge to company’s account

2)Export factoring:This could be considered where exporter pays for the specialist expertise of the factor in order to reduce bad debts and the amount of investment in foreign account receivable

3)Counter trade: It is a mean of financing trade in which goods are exchanged for other goods

4)Export credit insurance :Is insurance against the risk of non payment by foreign customers for export debts

5)Credit analysis: Companies can also manage and reduce risk by assessing creditworthiness of the customer through credit rating agencies, bank references etc