• Indirect Exporting
    The four basic ways for indirect exporting.
    Export
    Merchant
    • Buys the local firm's goods outright
    • assume the risk of being able to resell them profitably abroad.
    • Usually specializes
      • in a particular line of products and/or
      • in a particular geographical market area.
    • Sometime sells goods with the original supplier's labels or puts its own label.
    Export
    Agent
    • Acts for local manufacturers,
    • usually representing a number of non-competing manufacturers.
    • In return for obtaining export order from abroad, the export agent receives a commission.
    • Does not become the owner of the goods
    • Does not assume the risk of not being able to sell them abroad.
    • Usually retained on one or two years renewable basis with an export agency agreement.
    • Functions
      • Appraise the export potential of the manufacturer's products,
      • Advertise products abroad,
      • Look for foreign buyers,
      • Obtain export orders
      • Advise on, or arrange for
        • Documentation
        • Shipping
        • Insurance
    Resident Foreign Buying
    Agent
    • Acts as the purchasing agent for foreign companies
    • Earns a commission on the goods purchased.
    • The foreign principal advises this agent and says that it wants certain products at certain prices
    • Agent stationed locally goes looking for them, asking for quotations from several different local suppliers.
    Resident foreign buyer
    • Sometimes large foreign firm will have its own employee stationed in the local manufacturer's country or region.
    • Will act on employer's behalf, seeking to buy goods.
    Trading House
    or
    Trading
    Company
    describe all these various types of international traders including those who specialize in importing as well as exporting.
    Contact trading houses in a variety of ways:
    • Trade directories
    • Internet
    • Country directories
    • government commercial representatives abroad
    • Commercial banks
    • Freight forwarders
    • Contacts made at trade shows
    • International Chamber of Commerce
    • World Trade Centers
    • World Wide International Government Consulate and Embassies
    • http://www.iccwbo.org/