Risk Management in Emerging Markets

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       eMeRging MaRkets
       Risk ManageMent in                                                                               There is no substitute
                                                                                                        for experience.
                                eMeRging MaRkets DeManD.
                                         You supplY.
                                                                                             Your guide in the developing world.

                                                                        ABOUT NEW ECONOMIA
                                    We Make it Happen.                                       To participate in emerging markets a company
                                                                                             must be well prepared and well advised. New
                                                                                             Economia is here to help your company transition
                                                                                             smoothly into new markets. We offer a full
                                                                                             complement of business solutions for companies
                                                                                             moving into emerging markets, from market
                                                                                             intelligence and consulting to pre-business
                                                                                             administration and compliance services.

                                                                                             “Why would you not hire
                                                                                             an advisor for trasactions as
                                                                                             important as these?”
                                       New Economia                                          We have a special passion for the work that we do,
                                                                                             which has allowed us to become innovators in this
                                       You’re covered.                                       field, being the first to implement the “trigger-
                                                                                             style” political risk policy. We tailor our services to
                                 OFFICE NUMBER    646.470.1723                               meet the unique needs of each client and offer each

    New Economia                      FACSIMILE
                                                                                             a special guarantee of growth. Contact us to find
                                                                                             out more.
                                                                                           POLITICAL RISk INSURANCE
                                                                                                                                                                                                      Some of the best business opportunities are
                                                                                Political risk insurance is a tool for businesses to manage the                                                       emerging in developing countries. These
                                                                                risks arising from adverse government action.
                                                                                                                                                                                                      regions cannot be ignored.

                                                                                                                                                                                                      The investment opportunities are robust. You will
                                                                                                                                                                                                      find that there are profitable retail, development,
                                                                                                                                                                 NEW LEG

                                                                                                                                                                                                      and infrastructure opportunities in countries
                                                                                Expanding company                   Invests directly in                Is subject to the rules                        currently transitioning to more sophisticated
                                                                                finds excellent                     the new territory by               and volatility of the
                                                                                opportunity abroad.                 building or buying.                foreign country.
                                                                                                                                                                                                      economies. Retail and related industries are thriving
                                                                                                                                                                                                      in new markets and are benefiting greatly from
                                                                                                                                                                                                      being the first to the new market. Developers
                                                                                                                                                                                                      are learning that demand is growing steadily for
                                                                                                                                                                                                      shopping centers, housing, office parks, research
                                                                                                                           is your new
                                                                                                                                                                                                      centers and other development projects. Likewise,
                                                                                                                                                                                                      there is still room for major infrastructure projects
                                                                                                                                                                                                      in rural and urban areas alike.
                                                                                Profit repatriation is               Investment is                       Investment becomes

                                                                                                                                                                                   EMERgINg MARkETS
                                                                                disallowed because of the            compromised by                      inoperative because
                                                                                sudden inconvertibility of           expropriation or                    of political unrest in                       Take advantage of these opportunities and be
                                                                                                                                                                                                      protected from unforeseen risks by engaging the
   The future is in
                                                                                the local currency into hard         license cancellation.               the host country.
                                                                                currency or the inability to
                                                                                transfer hard currency out of
                                                                                                                                                                                                      services of knowledgeable advisors and acquiring the
                                                                                                                                                                                                      proper insurance.
   emerging markets.
                                                                                the country.

                                                                                                                                                                                                      With trade credit insurance, the insurer pays out
                                                                                                                                                                                                      if the foreign debtor cannot pay as a result of
                                                                                                                    Expanding company files           Insurer settles with the                        insolvency, political risk, currency inconvertibility
                                                                                                                    a claim for one of the            expanding company,
                                                                                                                    covered hazards.                  making it whole again.
                                                                                                                                                                                                      and a host of other factors, effectively passing that
                                                                                                                                                                                                      risk to the insurer. Political risk insurance does
                                                                                                                                                                                                      the same but for direct investments in the foreign
                       Can your company afford to dominate just                               TRADE CREDIT INSURANCE

                       one region in this global economy?                                                                                                                                             Other effective methods of transferring risks include
                                                                                Trade credit insurance protects the money due for goods and                                                           surety bonds, letters of credit, and factoring.
                                                                                services already supplied to a customer.                                                                              Each should be used in specific circumstances
                       Your business is global. You know that. Foreign
                       markets may be on your radar, but are they the                                                                                                                                 and in conjunction with standard risk mitigation
                       priority they should be? Paying too little attention                                                    INVOICE       Exporter offers foreign                                  techniques such as due diligence, proper contract
                       to foreign markets will certainly lead to operational
                                                                                                                                             company 30 days                                          drafting, and arbitration. All of these options can
                                                                                                                                             payment terms.
                       inefficiencies, missed opportunities for sales growth,      Exporter provides goods
                                                                                                                                                                                                      help your company obtain financing or better
                       and the increased likelihood of being blindsided            to foreign company.                                                                                                financing terms.
                       by fast-moving foreign competitors. Take action                                                                             Accounts

                       and own your company’s future. Don’t let the                                                                                Receivable                                         New Economia has the expertise to advise on
                       fear of volatility keep you from moving past your                                                                                                Payable                       each solution and can help you development the
                       competition, permanently. There are insurance                                                      SHUT                                                                        best strategy for your company’s situation and
                       solutions to protect your business from country-                                                                                                                               goals. We have licensed brokers who have built
                       specific risks as you expand into new territories.                                                                                                                             strong relationships with insurers and experienced
                                                                                 Exporter files insurance       Foreign company fails and            Foreign company                                  attorneys ready to draft policies specific to your
                                                                                 claim, ensuring expected       is unable to pay its debts,          suffers sales slump and
                                                                                 payment is received.           including money owed to the          begins to experience                             company’s needs.
                                                                                                                exporter.                            cash flow problems.

Description: Brochure describing the various risk management methods in emerging markets.