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Sun Tzu - Art of War
"Leaders who
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From the export point of view, a firm's product can be divided into three aspects:
The existing products
should be exposed in the foreign market to determine their reactions by sending samples to prospective Export,
import agents, merchant or distributors.
The size of the product
may also be a consideration. For example, people in
Asia are generally smaller, requiring smaller sizes in clothing and footwear.
Units of measurement
also vary or
food products will have to comply with health regulations and electrical
products having to meet safety requirements.
Climate often affects the design requirements: The ability to withstand extreme heat, cold, dryness and humidity. Religion and other cultural differences may also determine whether the product is saleable in its present form or otherwise.
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The exporter merchant
usually specializes in a particular line of products and/or in a particular geographical market area.
Sometime they sells the goods with the original supplier's labels or puts its own label.
Export Agent,
is a trading company that 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.
Unlike the export merchant,
the agent does not become the owner of the goods and therefore does not
assume the risk of not being able to sell them abroad.
An export agent
is usually retained on one or two years renewable basis with an
export agency
agreement.
The functions of the export agent
are to appraise the export potential of the local manufacturer's
products, advertise them abroad, look for foreign buyers, obtain export
orders, and advise on documentation, shipping etc.
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