Indirect and direct exporting

Indirect and direct exporting - Indirect and direct...

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Indirect and direct exporting Indirect exporting 1. Export management companies 2. Trading houses 3. Marketing boards 4. Buying agents for foreign governments Direct exporting 1. Foreign sales agent 2. Foreign distributor 3. Representative office 4. Subsidiary office 5. Foreign retailer 6. Foreign end user customer Advantages 1. Indirect : 1) No need for knowledge of foreign market 2) Customer takes care of market access 3) Low risk - similar to domestic transaction 2. Direct : 1) Closer links to end user 2) Gain understanding of the market 3) Get your feet wet! Disadvantages 1. Indirect : 1 Company gains little experience of exporting 2 Company loses control of product positioning
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