1.3.3. Financial environment
The international marketer should make a careful analysis of
the financial environment, since this area faces several risks. Even political
risks are part of the financial risks, among many other such commercial risks,
foreign exchange risks, inflation and so forth. In international business, the
two major concerns for the manager are how to get paid and how to avoid the
above mentioned risks. As money should flow between countries, credible
financial infrastructures like facilitating agencies, commercial banks,
research firms, are necessary. In some part of the world, the international
firm may have to be an integral partner in developing the various
infrastructures before it can operate, whereas in others, it may greatly
benefit from their high level of sophistication.
In West Africa, every single country has its won national
commercial banks. However transactions towards neighboring countries are
sometimes restricted to some amount of money and take time to be done. There
are some commercial banks like Citibank, and Ecobank that faster service, since
they are established in several countries. Also, Western Union and Money Gram
are specialized money transfer agencies, which enable fluidity in
transactions.
Chapter 2: The Political environment and political
risks
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