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Culture From the standpoint of credit risk management, a proactive, globally-oriented credit executive living in today's competitive marketplace understands that business credit decision-making is an art as much as a science. All the evaluating tools available cannot solely take the place of experience: on one hand, it is essential to possess a fundamental, analytical approach to the credit decision process. In the '70's and '80's, many international transactions were accomplished on a secured basis, e.g., letter of credit. However, expanded markets and elimination of trade barriers have caused the credit executive to look at a variety of ways to complete the sale. The "art" form of today's credit process includes an understanding of how different country's culture and negotiation process become part of the arsenal of tools in making an intelligent decision. How the culture of each country or region impacts the credit risk is material to the ultimate business decision. |
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