What Is The Concept of Indirect Export?


Indirect Export


Indirect Export:- It includes occasional exporting, that is companies work through independent agencies to export their products. These intermediaries may be:-


Domestic Export Merchants:- Buys manufacturers products and sells them abroad.


Domestic Export Agent:- Seeks and negotiates foreign purchases and is paid a commission e.g. trading companies.


Cooperative Organizations:- Carries on exporting activities on behalf of several producers and is partly under their administrative control. Often used by producers of primary products – fruits, nuts.


Export Management Co.:-


It involves less investment since the company does not have to establish an export department or an overseas sales force of a set of foreign contacts.


It involves less risk as international marketing intermediaries bring know-how and services to the seller, he will make fever mistakes.


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