Markets and international funding

Extract

[...] many pension funds and the growing cost of health insurance companies were undermining the funding capacity. Terms of payment: timing, mode of currency and trade relations It is important for an exporter to be wary of the provisions of a commercial contract which are payable on credit and to properly assess the conditions of payment best suited to the context. The mode of payments in the US is quite different from those of France. They do not act to recover on the basis of negotiable instruments law, as in France. [...]

[...] banks is a fast and inexpensive mode of transfer, especially when the factor of trust is established between the contractors. This is necessary because the seller is dependent on the goodwill of his client for the scheduling of the transfer order. Risks of non-payment Explanation: As the American judicial process is complex and costly, especially if it involves services of a counsel, it is always recommended, as long as possible, to negotiate and compromise settlement between the clients or request services a collection agency. [...]

[...] Recently, a renowned French company suffered considerable losses and had anticipated a decline in the dollar (and have protected against this risk), while the dollar was brought to appreciate against the euro. This was an advantage which the company has enjoyed, because of the hedging instrument used: options to tunnel eliminating any gain if the dollar rises. All these examples clearly show the continued existence of a currency risk for most companies who work with Americans. The companies must take into account their entire production process to assess their net exposure to currency risk in dollars: if a French company imports most of its raw materials and components in dollars, it will benefit globally unless the dollar, will be largely offset by potential losses (through imports). [...]