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Advantages of Indirect Exporting "...manufacturers can benefit from export know-how and personal contacts from the export merchant or agent..." The reasons why a local manufacturer may choose to export its goods indirectly include the following:
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Page 1 How to develop your export market? << This Page 2 How to benefit from export merchant or agent? Page 3 About Foreign Distributor & Import Agent Page 4
Socialist Countries Page 5 Sales Procedure for Export Export Contract Page 6 Incoterms describe the responsibilities of seller and buyer Page 7 Definitions of INCOTERMS trade terms |
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He merely follows the instructions given to him by the export merchant or agent with regard to packing, labeling, and Export Transportation & Shipment, etc.
Disadvantage of Indirect Exporting
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Page 8 About commercial disputes and arbitration Page 9 About The World Trade Center Association Page 10 Direct Export & Indirect Export Procedures |
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When the manufacturer wants to export his goods himself, there are various ways and procedure for direct export. Basically, there are three channels for direct exporting:
The manufacturer may try to develop its export sales by contacting prospective foreign buyers directly by mail, facsimile, the Internet, by participating in trade show abroad or make personal contact through visiting foreign countries. Own Company Employees - If the business is very large, there shall come a time when it becomes worthwhile to station the firm's own sales representative abroad, covering a whole region rather than just one country.
Recommended reference:
Checklist for Direct Exporting
Sometimes large foreign firm (e.g. food or department store chain) will have its own employee stationed in the local manufacturer's country or within the region. This Resident Foreign Buyer will act on his employer's behalf, seeking to buy goods for his company.
This is a firm that acts as the purchasing agent for foreign companies, receiving a commission on the goods purchased. The foreign principal advises this agent and says that it wants certain products at certain prices and the agent stationed locally goes looking for them, asking for quotations from several different local suppliers.
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Foreign Distributor,
Foreign Import Agent |
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