International Market Intermediaries – International Business

International Market Intermediaries are middleman or intermediaries who act as channel members in the product distribution channel. They facilitate the sales process buy linking buyers with sellers.

International Market Intermediaries are responsible for seeking potential buyers/sellers , negotiating terms of trade and importing/exporting the products to the end user. 

Types of International Market Intermediaries

The Various types of International Market Intermediaries are as follows:

Foreign distributor – It refers to a foreign company having exclusive rights to distribute a company’s product in the foreign market or specific area.

Foreign retailer – It is a retailing company in a foreign country engaged by the foreign distributor concerning dealing and selling of a company`s products. Foreign retailers deal in products meant for consumers.

State-controlled trading company – It is a government owned company authorised to deal and sell the products/services of foreign companies. Generally utility and telecommunication equipment are sold to state controlled companies by manufacturers. Example – State Trading Corporation of India.

Export Broker – An export broker is engaged in exporting goods for a domestic company by charging a fee. Export brokers act as a representative of a manufacturer and are responsible for bringing together buyers and sellers and negotiating the terms for the seller. The export broker may operate under its own name or that of the manufacturer.

Manufacturer’s Export agent / sales representative – It is an independent firm exclusively engaged to take up all export activities of a domestic manufacturer. An export agent operates under his own name and charges a commission for seeking potential buyers and selling the domestic manufacturer`s product.

Export Management Company – It is a company that manages the entire export activities of a domestic company on a contract. It may function as an export department for a manufacturer therefore it is also known as a Combination Export Manager (CEM).

Cooperative Exporter – Manufactures of a particular product in the domestic country form a cooperative union to manage their export activities. Example – Singer, Borg Warner

Webb-Pomerene Association – It is an export cartel jointly formed by two or more domestic manufacturers to market their product overseas.

Purchasing/Buying agent – It is an agency of a foreign buyer/importer company which appoints agents to arrange for buying products from other countries.

Country controlled buying agent – It is a government agency involved in locating and buying products for its country.

Resident Buyer – A resident buyer is an independent agent located near a highly centralized production industry involved in buying products on behalf of an importer.

Export Merchant – An export merchant is a person who buys products in domestic country to sell them in foreign country.

Export Drop Shipper – A person who links exporters and importers. An export drop shipper is also known as a desk jobber or cable merchant.

Export Distributor – A company which is granted exclusive rights to represent the manufacturer in selling the products in foreign country. The company may use his own name or manufacturer’s name to sell the product.

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