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Unformatted text preview: Agent Vs Distributorship: Agent: An agent is a representative located abroad and earning a commission on the sales it makes on behalf of the exporter. An agent cannot negotiate prices, delivery, or other sales terms with the buyer, but only represents the decisions made by the exporter. Distributor: A distributor is also located abroad, but it purchases goods from the exporter, with the idea of reselling them in its country, earning a profit in the process. The distributor is setting its own prices and has an inventory of goods to sell: It is most often responsible for after-sale service as well. Agency vs Distributorship : There is no international agreement on the way each of these relationships is governed. In most cases, the country of residence of the agent or of the distributor considers that it has jurisdiction over the agreement, and in many cases, despite the fact that the agreement may specify that the...
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This note was uploaded on 09/10/2009 for the course QBA 765 taught by Professor Danepeterson during the Spring '09 term at Missouri State University-Springfield.
- Spring '09