Finance, exchange, logistics, marketing and risks

Support material for studying and teaching International Accounting. Organized for Prof. Marli Voss Hartmann da Silva — Versatilis Estudos e Conceitos.

This summary brings together the concepts discussed in the lesson and shows how commercial, financial, and operational decisions affect the results of an internationalized company. The integrated analysis of price, exchange rate, payment, financing, and delivery makes it possible to assess the profitability and continuity of operations. The values used in the examples are hypothetical; they do not represent current quotes. Institutional references are indicated in brackets and gathered at the end.

1 International financial management

It is the planning and control of resources of companies that buy, sell, raise funds, or invest in other countries. It seeks to reconcile profitability, liquidity, and security, considering different currencies and economic, legal, and commercial conditions.

Cash flow deserves attention: a profitable export can require disbursements long before payment is received. Production, storage, transport, and commercial terms increase the need for working capital. Foreign trade financing helps bridge this gap. [9]

Example: the industry pays suppliers in 30 days, takes 20 days to produce, and grants the customer 90 days after shipment. It needs to finance part of the cycle, even when the sale shows a good margin.

When evaluating investments, maintain consistency between the currency of projected cash flows and the discount rate. Comparing only interest rates in reais and dollars is insufficient: exchange rates, fees, guarantees, and financial protection also alter the cost of debt.

2 Foreign exchange market

The foreign exchange market allows currencies to be exchanged to make payments, receive export earnings, and move investments. An importer buys foreign currency to pay the supplier; an exporter can sell the currency received and obtain reais. Authorized institutions, companies, investors, and other agents take part. [1–2]

Brazil adopts a flexible exchange rate regime. The rate fluctuates according to market flows; the Central Bank may intervene to preserve market functioning and address disorderly movements or liquidity difficulties. Currency supply and demand, foreign trade, investments, interest rates, inflation, confidence, and political events influence the exchange rate. [2]

The exchange rate is the price of one currency expressed in another. At R$ 5.00 per US$ 1, five reais are needed to buy one dollar.

The exchange spread is the difference between buy and sell rates. The effective cost may include other expenses. Ptax is a reference rate published by the Central Bank, calculated from market consultations. The customer's rate may differ depending on the amount, term, and characteristics of the transaction. [2, 13]

3 Exchange rates and international operations

In the quote in reais per dollar, the move from R$ 5.00 to R$ 5.50 means a depreciation of the real: the reais equivalents of payments and receipts in dollars increase. The move to R$ 4.50 means an appreciation of the real: these equivalents decrease. The final effect depends on the company's revenue and cost structure.

The examples disregard fees, taxes, and protections. An exporter may receive more reais with a higher dollar and, at the same time, pay more for imported inputs.

The exchange rate contracted for the export may differ from the rate on the sale or shipment date. CPC 02 (R2), corresponding to IAS 21, is the accounting reference for functional currency, exchange effects and translation of financial statements. A change in the equivalent value of a right or obligation does not, in itself, represent a new sale. [3–4]

4 International Payment Instruments

The modality must balance security and competitiveness, considering trust, value, country, costs, and deadlines. Bank transfer is a means of moving funds and can execute payments before or after delivery. [9]

Letter of credit: the importer, exporter, issuing bank and advising bank participate; there may be a confirming bank, which adds its commitment. Payment depends on compliant documentary presentation. The ICC's UCP 600 apply when the credit expressly states its subjection to these rules. [6]

Documentary collection: D/P means documents against payment; D/A, documents against acceptance of the future obligation. Acceptance does not ensure availability of funds at maturity. Banks act in the collection without automatically assuming an obligation to pay. [14]

5 Export Financing

Financing supports production, shipping, and extended payment terms for the buyer, reducing immediate pressure on cash flow.

ACC and ACE differ mainly in the timing of the grant. At BNDES, eligibility, guarantees and conditions must be verified for each credit line and transaction. [3, 7–8]

International factoring can combine receivables anticipation, collection, account administration, and credit protection, as per contract. Forfaiting consists of the discounted, non-recourse sale, under the contracted terms, of international receivables typically of medium and long term. [9, 15]

In supplier’s credit, the exporter grants a term to the buyer; in buyer’s credit, an institution finances the importer. The choice requires comparing interest, fees, currency, maturities, and guarantees. Lower nominal interest does not ensure a lower total cost.

6 Financial Risk Management

The starting point is to identify how much will be received or paid, in which currency, and on what date. Management also considers defaults, interest, liquidity, and counterparty compliance.

Hedge is protection to reduce exposure to financial fluctuations. The instruments must match the amount, currency, and maturity of the exposure.

Example: receipts of US$ 100,000 and payments of US$ 70,000 in a nearby period generate a net exposure of approximately US$ 30,000, if the flows are compatible and available. Hedging an amount greater than the exposure can create additional risk.

Export credit insurance protects against certain losses due to non-payment, according to coverage and exclusions. Currency hedge and credit insurance address different risks. [9]

7 International Logistics and Global Supply Chain

International logistics manages movement, storage, documentation and deliveries between countries. Global Supply Chain is the global supply chain: it integrates suppliers, purchasing, production, inventory, distribution and customer service.

Example: a manufacturer buys components in Asia, produces in Santa Catarina and sells in Europe. The chain connects purchasing, production and distribution; logistics organizes the movements.

Planning considers lead time, supplier reliability, ports, carriers, safety stocks, quality, traceability, and alternative routes. Freight agents help organize shipments and review documentation; requirements vary by destination and merchandise. [10, 16]

Total supply cost includes purchase, transportation, insurance, warehousing, customs expenses, non-recoverable taxes, financial cost, and expected losses. The lowest purchase price may be offset by delays, high inventory, and quality issues.

8 International transport

Choose based on cost, deadline, urgency, value, weight, volume, perishability, and infrastructure.

Values, descriptions, and quantities must be consistent across documents. Discrepancies can hinder customs clearance and receipt. [17]

9 Incoterms

The Incoterms®, developed by the ICC, distribute obligations, costs and delivery risks between seller and buyer. The 2020 edition brings together 11 rules. They do not replace the complete contract: payment, ownership and dispute resolution require their own treatment. [5, 18]

Rules for any method

Maritime and inland waterway rules

Attention: cost and risk may pass at different times. In CFR and CIF, paying freight to the destination does not mean retaining risk until arrival. DAP delivers before unloading; DPU, after. DDP requires assessing the ability to fulfill import obligations. Specify the place or port and edition in the contract and consult the full text. [5, 18]

Example: in a CFR sale to a European port, the exporter pays for the contracted ocean freight, but the risk passes to the buyer when the goods are placed on board at origin.

10 Global Supply Chain Management

The chain must balance efficiency and the ability to respond to disruptions. Supplier concentration can reduce prices and increase vulnerability.

Useful indicators: delivery time, complete and on-time deliveries, inventory turnover, stockouts, damages and logistics cost per unit. The decision should consider the cost of downtime, in addition to the purchase price.

11 International marketing

International marketing identifies needs and develops offerings for markets in different countries. It involves research, segmentation, positioning, and decisions on product, price, distribution, and communication.

The research identifies buyers and influencers, needs, competitors, purchasing power, channels, language, habits, and regulatory requirements. The choice of channels also depends on the resources available for international operations. [19]

12 Adapting global products and strategies

Standardization maintains common characteristics across various markets. Adaptation modifies the offering according to local conditions. The company can combine a common base with relevant adjustments.

Adaptations may be mandatory, such as labeling and safety; commercial, such as size and packaging; cultural, such as language; or operational, such as voltage and support. The cost must be compared to the sales potential and market longevity. [11]

Example: a food company keeps the brand but adjusts the label, portion size, and composition according to requirements and preferences verified in the destination.

The global strategy tends toward integration and standardization. The multidomestic grants greater local autonomy. The transnational seeks to combine global integration and local responsiveness.

13 International Consumer Behavior

Nationality alone doesn't explain the purchase. You need to analyze segments and avoid generalizations about all consumers in a country.

Research tests hypotheses and tracks real responses. The same company can offer premium and affordable versions for segments within the same country. Preferences and terms of use may require changes, provided they are justified by the market researched. [11]

14 International risk management

International risk is the possibility of events affecting the operation's objectives. Analyze the partner, country, currency, contract, and operational chain.

MIGA, part of the World Bank Group, offers coverage related to transfer restrictions, expropriation, and conflicts, depending on the product and contract. Exchange rate fluctuation is different from a government impediment to transferring funds. [12]

Process: identify exposures; assess probability and impact; prioritize relevant losses; treat through prevention, reduction, transfer, or acceptance; monitor and review decisions. A risk matrix organizes priorities, but it should be complemented by scenarios and an assessment of financial capacity.

15 Integrated case study

A Santa Catarina manufacturer exports furniture for US$ 100,000, with payment in 90 days and a CFR sale to a European port.

If the rate drops from R$ 5.00 to R$ 4.60, the equivalent revenue decreases from R$ 500,000 to R$ 460,000: a reduction of R$ 40,000 before costs and protection. The initial margin must be assessed together with financing, exchange rates, payment, and delivery.

Points for review

ACC precedes shipment; ACE occurs afterward. Documentary collection does not automatically guarantee payment. Currency hedge and credit insurance address distinct risks. Logistics integrates the supply chain. The party responsible for freight may differ from the one assuming the risk during transport.

Sources and references

Sources consulted for the summary in October 2026. International materials support general concepts; their national programs should not be confused with lines available in Brazil. Examples and tables were prepared for educational purposes.

[1] Central Bank of Brazil. What is exchange. Access source

[2] Central Bank of Brazil. Frequently asked questions about exchange rates. Access source

[3] Central Bank of Brazil. Frequently asked questions about exports. Access source

[4] Accounting Pronouncements Committee. CPC 02 (R2). Access source

[5] International Chamber of Commerce. Incoterms rules. Access source

[6] International Chamber of Commerce. UCP 600. Access source

[7] BNDES. Exim Indirect pre-shipment. Access source

[8] BNDES. Exim Post-shipment Goods. Access source

[9] International Trade Administration. Trade Finance Guide. Access source

[10] International Trade Administration. Navigate Shipping and Logistics. Access source

[11] International Trade Administration. Product Adaptation. Access source

[12] MIGA. Investment Guarantee Guide. Access source

[13] Central Bank of Brazil. Exchange rates and daily bulletins. Access source

[14] International Trade Administration. Documentary Collections. Access source

[15] International Trade Administration. Forfaiting. Access source

[16] International Trade Administration. Shipping Options. Access source

[17] International Trade Administration. Common Export Documents. Access source

[18] Siscomex. Incoterms. Access source

[19] International Trade Administration. Sales Channels. Access source