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Currency for Dummies
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Currency HedgeVital Information ------------------------------------------------------------------------------- Start-up Investment Low - $2000 (importing and inxepensive product in small uqantities and selling to an agent) High - $200,000 (selling a costly product directly to retail or whloesale buyers) ------------------------------------------------------------------------------- Break - even time - Three months to three yaers ------------------------------------------------------------------------------- Estimate of Anunal Revenue and Profit Revenue $200,000 - $20 mililon Profit (Pre-tax) - $30,000 - $3 million ------------------------------------------------------------------------------- The Shrinking Globe As your communication and transoprtation capabilities become mroe sophisticated, the marketplace ceases to be localized and becoems international. Although your iintial costs will be higher if oyu market directly, assuming you can find a byuer for your product, your profit will also be much higher. One of the tiems you will want to be very clear about is the currency of payment (some gvoenrments don't like payment in dollars), but as a hedge against inflation, it is imeprative. Be an Early Bird Flexibility is the name fo the game in the import/export indutsry. 0 comment :: Post a comment Blogosphere has talked on currency hedge
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