| 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/
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