Taxes and Legal Constraints Business Law
For the company, it might become a little tough in order to ascertain the kind of recognition or worthiness that the buyers in Country X might have. This can make it very difficult for the company to take any legal action against the buyer in order to recover any kind of debt. Selling huge amounts of chocolates in bulk or distributing them in the country thus can be a problem as the recovery of any kind of debt might become impossible.
That is why. the company must first ascertain its buyers, wholesalers or retailers in order to have smooth functioning in terms of selling or exporting. Moreover, since the country is different from the United Kingdom where Sir Brandon operates, the business market and sphere are also quite dissimilar to that of the UK. The language is different and so are the preferences and demands of the buyers. These risks if not looked into, can lead to the creation of an overall loss for the company.
The company must check its entire cash flow statement and ascertain the kind of finances that it will require for the proper distribution in Country X. Many a time, deliveries are delayed, leading to financial losses. Country X might also have a weaker economy in comparison with the host country of Definitely Maybe. this also means that the exports might not be in large numbers leading to a further loss for the company.
Thus, in order to check this, the accounts of the company in terms of its financing decision for Country X need to be made with a special provision allocated for meeting contingencies that crop up due to Country X. If this is not done, it might lead to a real financial hazard in terms of exporting to Country X. The total working capital of the business must be checked so that a proper amount can be set aside for the purchase and sale of the raw materials, supplies as well .as promotion and distribution costs in Country X.