Read the text and summarize it in 100 words. Discuss the ways of dealing with customers who are unwilling to pay.

Payment Problems

In international trade, problems involving bad debts are more easily avoided than rectified after they occur. Credit checks and the other methods that have been discussed can limit the risks involved. Nonetheless, just as in a company's domestic business, exporters occasionally encounter problems with buyers who default on payments. When these problems occur in international trade, obtaining payment can be both difficult and expensive. Even when the exporter has insurance to cover commercial credit risks, a default by a buyer still requires time, effort, and cost. The exporter must exhaust all reasonable means of obtaining payment before an insurance claim is honored, and there is often a significant delay before the insurance payment is made.

The simplest (and least costly) solution to a payment problem is to contact and negotiate with the customer. With patience, understanding, and flexibility, an exporter can often resolve conflicts to the satisfaction of both sides.

This point is especially true when a simple misunderstanding or technical problem is to blame and there is no question of bad faith. Even though the exporter may be required to compromise on certain points - perhaps even on the price of the committed goods - the company may save a valuable customer and profit in the long run.

If, however, negotiations fail and the sum involved is large enough to warrant the effort, a company should obtain the assistance and advice of its bank, legal counsel, and other qualified experts. If both parties can agree to take their dispute to an arbitration agency, this step is preferable to legal action, since arbitration is often faster and less costly. The International Chamber of Commerce handles the majority of international arbitrations and is usually acceptable to foreign companies because it is not affiliated with any single country.

Case study

Read the text and discus ways how to solve this case.

Community Organizing & Social Change^[62]

You are a community organizer working to address some major social problems in your community. You live in a large urban neighborhood in Minneapolis that is strongly stratified by class. The houses on the Southern side of your neighborhood are quite dilapidated, crime is rampant, vital businesses and jobs are scarce, and the neighborhood is in need of revitalization. Most people in this section of the neighborhood make a median income below the poverty line. The Northern side of the neighborhood is more affluent. There are numerous businesses within walking distance, crime has generally remained minimal, and there is a Neighborhood Watch program in place.

Recently, the local news media has exposed an upsurge in crime in the entire neighborhood. A housing crisis is occurring, drug use in the community is extensive and progressively visible, and the school district is in shambles after dropout rates have surged and teacher retention has dwindled. Community members on both the Northern and Southern ends of the neighborhood have increasingly expressed concern about the state of their community. There is a neighborhood organization in place; but all regular members are upper-middle class, and most neighborhood projects and initiatives focus on beautifying the Northern section of town.

Community members from the Southern part of town have recently expressed anger and frustration about their lack of status in community operations. Local government representatives are deliberating on whether or not to install a community-policing program in the community or to explore other options. The housing crisis is becoming a wide-scale dilemma, now affecting the middle class and not simply impoverished community members. All families are concerned about the poor resources in their schools and the lack of quality educators. The existing neighborhood group now realizes that they have a crucial role in rallying ALL community members to address the various problems facing the community, and they must come up with some solutions before the upcoming community meeting.

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