This dissertation examines the covid-19 impact on exportation and export risk management. The covid-19 pandemic brought the whole world to a standstill. As a result of the disruptions, many individuals are now jobless. The rapid measures also set by governments for containing the virus affect the economy in general. The benefits of exportation are several and benefit both the government and the citizens of a given country. During these times of the pandemic, the government and its citizens cannot fully enjoy the benefits. Although some borders were still open for the transportation of goods, there still exists a lag in production due to the measures. The measures limit the movement of people and the operation of industries.
EXAMINING EXPORT RISK MANAGEMENT
The benefits of exportation are significant in the development of economies and trading activities. However, during this process, the business incurs some risks. A risk is an unforeseen event. Every business is bound to face risks at one point or the other regardless of the size. Export risk management is a process meant to identify and mitigate risks before they result in undesirable outcomes. On the contrary, the process is not for eliminating risks because risks are not predictable. For example, nobody expected the covid-19 impact on exportation. The process of risk management involves identifying, ranking, evaluating, and monitoring risks over a continuous period. An effective risk management plan allows businesses to expand and attract global investors.
THE BENEFITS OF EXPORTATION IN A COUNTRY
Exportation is the process of sending goods and services from one country through trade. Exportation is favorable for both large and medium-sized businesses. The benefits of exportation include the following. It provides opportunities for access to a variety of consumers and businesses. As a result, it allows businesses to exploit potential profits in other countries. Secondly, exports offer diversification of markets, thus creating access to new markets. Thirdly, it is an opportunity for expanding the lifecycle of mature products that are saturated in their country of origin. Additionally, it is one of the major sources of revenue for governments. Therefore, export risk management is crucial for maintaining the consistency of transportation.