The intermediaries are present in the country producing the product.

Here, businesses have lesser control over the processes.

The company has various intermediaries, such as foreign agents, export merchants, expert management companies, etc. Indirect exporting is a type of exporting practiced by companies that sell products to other countries with the help of an intermediary. This exporting type requires more personnel, resources, and time than it would if the export process were to happen through an intermediary.ĭirect exporting is the best strategy for companies trying to penetrate new markets globally for the long term. Direct exporting also creates a stronger bond between the supplier and the buyer, and maintaining business relationships is crucial for business success.ĭespite the advantages mentioned above, direct exporting also demands more resources from the exporting company. Direct exporting also increases profits as the intermediary is eliminated, reducing costs. This way, the companies have more control over the processes. All the deals are done directly between the companies without any intermediaries. Exporting Types: Direct Exportingĭirect exporting is a type of exporting where the company directly sells products to overseas customers. When it comes to exporting, there are two main types - direct exporting and indirect exporting. We will take a closer look at this concept in the following sections.įig. The ease of exporting and expanding into other areas of the world depends on various factors, such as the political and economic conditions of the nation. Some countries can grow globally faster than other countries. This way, customers also have access to products from around the world. Exports help countries expand their market globally. The process of producing goods in one country and selling them to another is known as exporting.Įxporting forms an integral part of international trade.

Market Segmentation Targeting and Positioning.

Export trade meaning