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Secrets of International Trading © copyright Summary of Various Indirect Exporting "Decide whether you want to sell directly to foreign buyers or indirectly through an export agent."
1.
Export Merchant
- Handle a wide variety of products.
2.
Export Agent/Broker
- Negotiates export sales for a 3. Foreign Resident Buyer - Buys for his principal abroad. 4. Manufacturer - Exports own products as well as related but non-competitive products. 5. Export Consortium - Undertakes large projects abroad.
Procedures for INDIRECT Exporting Prepare a short list of trading house that might be interested in handling your product. 1. Get references and recommendations about them. 2. Ask for information for each trading house, explaining your purpose.
3.
Visit the most promising to find out what they may be
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5. Reserve those foreign markets that you wish to export to directly.
6.
Supply
trading house
selected by you with information 7. Negotiate an agreement whereby the trading house buys directly from you or acts as your export agent covering prices, commissions, export support, orders, etc.
8.
Maintain close contact with the trading house, and
1. Direct to Final Buyer Abroad - Manufacturer sells directly to buyer abroad. No middlemen. Needs high degree of marketing skills.
2.
Foreign Distributor
- Buys and sells on own account.
3. Foreign Agent - Sell your product on commission.
4.
Foreign Broker - Handles primarily commodities and 5. Foreign Trade Organization - Specialized import agencies of socialist and some non-socialist countries. 6. Licensing Agreement - Exporter may seek royalty in exchanging for licensing a foreign firm to manufacture his product abroad, use his brand name, technology, etc. 7. Joint Venture - Exporter may enter into a partnership arrangement with a foreign firm to produce and market jointly in the foreign country
Decide whether you want to sell directly to final foreign buyers yourself or through an import agent or to a foreign distributor located in the target market 1. Prepare literature about your company and products that would be suitable for your exporting activities. 2. If selling direct to final foreign buyers yourself, arrange for promotion campaign (direct mail, trade shows, advertising foreign visits, The Internet etc.) and develop a list of sales leads. 3. Begin sending letters, etc. to prospective customers and following up sales lead.
4. If selling through agent or distributor, begin search for
5. Select agent or distributor 6. Negotiate and sign agency or distributorship agreement. 7. Fill orders, as and when received. 8. Monitor performance of agent or distributor. |
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