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Word Count: 866
An Indirect Exporter is when a firms product is sold in foreign markets with no special activity for this purpose occurs within the firm Others carry a firms product overseas Although exporting this way can open up new markets quickly a firm will have limited control over distribution of its productA firm likes to have a buyer thus products are sold in a domestic market then resold overseas in different ways-Foreign wholesale and retail organisations that have purchasing agents in a firms home country may find the firms product good for their market-Manufacturers and firms have US offices obtain equipment and supplies to their foreign operations Companies have an advantage by selling to the US firms because they are using export routes already supplying their domestic operations via the US-With multinational operations buy equipment and supplies for them through their regular domestic purchasing Equipment is shipped and installed in foreign plant Foreign producers take note of the equipment Then orders for the equipment will follow Thus an active exporting involvement by the supplying firm This has befitted the supplying firm with a free introduction to the foreign marketInternational trading companies are very important for some markets Some of these companies handle the majority of the imports into the country The size and market coverage of these trading companies makes them excellent distributors especially with their credit reliability They cover their markets and provide service for the products they sell Using these trading companies has negative factors These companies have a tendency to carry competing products and the latest product may not receive the attention its producers desiredThe sales from these kinds of indirect exporting are as good as domestic sales and show that they are less stable Since being so far from the main market a firm has little control Even though new sales is helpful the disadvantage of not having more control of foreign sales a company may look for a more suitable arrangements
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