INTERNATIONAL TRADE: A FEW SIMPLE RULES TO DEFEND AGAINST SCAMS.

22/01/2018

INTERNATIONAL TRADE: A FEW SIMPLE RULES TO DEFEND AGAINST SCAMS.


The growth and the strengthening of trade flows between countries and their origins and destinations have changed significantly over the past quarter century.


The phenomenon, known now as "globalization", is an unstoppable process of change that radically changes the rules of the economic and competitive game, driving companies to think in an international perspective.


However tackle the international markets involves a remarkable series of difficulties of various kinds, for example:
• legislation and contracts differently in different foreign countries
• exchange rate risk associated with the use of different currencies
• political - economic risk country
• customs rules differ from one country to another
• difficulties and barriers related to language
• commercial and customs not equal to one's country
• manage long distances, which can affect the delivery of goods


To manage all these difficulties there are several legal instruments, which will be discussed in a future article.


Now let us consider on another aspect inherent in international trade: the scams.
It is indisputable that with the increase in international business relations between the companies have grown exponentially the potential scams against the same.

The constant digital innovation makes provisions fraudsters increasingly sophisticated systems and devices.
There is so to fraudsters who can clone email addresses, business domains and sometimes entire websites belonging to companies or organizations that are highly known; after they starting the search company recently noticed to stretch the trap and get to their credit or guarantees.


Other times they build entire websites, totally functional structured and graphically appealing, inserting content, whole galleries of articles, excellent news on hypothetical company: pity that the company in question is non-existent ...


How do we say this? Why are many years to provide our customers company extract in Europe and in several foreign countries (like China, Hong Kong, Singapore, etc) and we have stumbled in businesses only to fantasy, in companies not register in their own country.

This phenomenon is often present in Emerging Countries or in Eastern Europe, although there are no free zones.
Other times the company extract and some companies documents made it possible to verify the discrepancy between what the company declares on its website and what corresponds to reality.

So we recommend adopting a few simple rules when you want to do international trade or receive business proposals from abroad:
• if you receive an email from a foreign company, do not click on any of the content of the
same, but look for yourself the company's site to check anomalies
• if the mail has the signature of the legal representative of the company, buy a business registration certificate, to verify that the company is existing, registered with the Register of Companies and
the legal representative is actually the one who signed the e-mail; furthermore the company
extract will give you more valuable information on the company, to decide whether to
investigate the deal
• even if the data of the company extract is the same with what is reported in the mail, it is
very useful to establish a telephone or e-mail contact with the company


The above are some simple initial steps when you start business relations with foreign countries. There's also all part of the signed credit to manage (Stand By Letter of Credit, Advance Payment, Bond, Performance Bond, etc.).


This way they can focus only on the really lucrative business.