A certain element of risk is involved in all business activity and this needs to be recognised and managed. Potential export risks include:
Exporters will need to address more cultural, political and legal issues than when operating in Australia.
These may include more complex documentation and administration, protection of intellectual property and geographical remoteness from markets and customers.
Exporting may impact on a business’s domestic activities. It may reveal capacity constraints and productivity constraints and highlight the need for specific skills.
Businesses must recognise that exporting will initially involve expenditure which may impact on cash flow. They must also be aware of export financing/currency issues and the added risk of potential non-payment for goods and services supplied to foreign buyers.