n your final Project, you will be evaluating the technical aspects and financing options of your export operations to 2 companies located in Brazil and Japan.

The information about the importing companies and the main terms of your agreement are as follows:

1-) The importing company in Brazil and major terms of your agreement

The importer is a large and established firm, founded in 1965, with its headquarters located in Sao Paolo. Your initial investigations show that,the company has a good credibility and relations with local banks in Brazil. This will the the first time your company is doing business with this firm. You also learned that this company is importing from many parts of the world for a long time.

Your have agreed to export your products to this Brazilian company as CIF with a payment period of B/L+120 days. The importer wants the payment under open account conditions, but you tend to complete this operation under a deferred L/C. So, you are still negotiating the payment alternatives.

2- The profile of the importing company in Japan and major terms of your agreement

The importer is a new and small sized company, founded in 2020 in Tokyo. It does not have long lasting banking relationships in Japan but the founders are young and want to grow their business in the Japanese market. This will the the first time your company will be doing business with this firm.

Your agreement with this Japanese company is FOB. The importer wants to complete this operation under a deferred an L/C with a payment term of B/L+90 days but you want the payment terms of cash payment against documents.

Write down and explain the major risks you foresee in these operations (eg. regarding product, payment, transportation, delivery, political/legal, etc.)