![]() Exporters have also not to pay commission on foreign sales.īy going direct, the manufacturer may have full information on marketing opportunities and trends, competitors, product acceptance and other valuable information. As we know that in indirect exporting, the middlemen purchase the products in the exporters’ country at cheaper rates and sell them at higher prices in foreign markets of their choice and thus share the profits. The manufacturer enjoys full returns on the sales of his goods in foreign market because he does not have to share his profits with anyone else. He is the prime decision maker in exporting. Exporter has complete control over the prices to be charged for his product, can determine the credit terms, and may have control over the distribution system. ![]() The manufacturer has complete control over foreign market. The goodwill so earned is likely to remain an asset of the manufacturer rather than of some middlemen. If the product of a manufacturer is successful in international markets he builds up name, reputation and goodwill. The manufacturer is in direct touch with the consumers or retailers and can possess a better understanding and knowledge of the requirements of the buyer and can modify, if needed, his product accordingly. Better Knowledge of Customers’ Requirements: ![]() Main advantages of direct exporting are as under:ġ. Direct Exporting: Advantages of Direct Exporting: In this article we will discuss about the advantages and disadvantages of direct and indirect exporting. ![]()
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