Expand Trade globally – strive or Drive?

Nov. 17, 2009 - PRLog -- Expand Trade globally – strive or Drive?

A. Direct Exporting
In direct exporting, your company finds a foreign buyer and then makes all arrangements for shipping your products overseas. This method requires a lot of footwork and infrastructure, and entails more risk, but the potential profit rewards are often higher. If you choose to export directly, you have several options:
Sales Representatives/Agents -- Essentially, you hire foreign-based representatives or "agents" who work on a commission basis to locate buyers for your product, just as you would domestically.
Distributors -- You strike a deal with a foreign distributor, who purchases merchandise from you and resells it with a markup. The distributor maintains inventory and provides after-sales service to the buyer.
B. Indirect Exporting
Your company uses an export intermediary to perform most of the details of the export arrangement. Many small businesses choose this option, at least at the outset. There are several types of export intermediaries:
Commissioned agents - These are brokers who link your product or service with specific foreign buyers, allowing the primary company to fulfill the order and handle packing, shipping and export documentation.
International trade is the exchange of raw materials, goods and services across the geographical borders of countries. International trade got its first impetus from the industrial revolution in the late eighteenth and early nineteenth century. Rapid development in transportation facilities resulted in commodity movements across the border and exerts a surge in international trade. Today, international trade has taken the form of outsourcing and multinational companies (companies that have a presence in several countries).

Hence each company has a thirst for external trade; to quench this thirst companies explore the possibilities for International trade ventures
       
 Joint Venture:

A joint venture is a business enterprise under-taken by two or more persons or organizations to share the expense and profit of a particular business project. They are agreements between parties or firms for a particular purpose or venture. Joint ventures have grown in popularity in recent years. Among the most significant benefits derived from joint ventures is that partners save money and reduce their risks through capital and resource sharing. Joint ventures also give smaller companies the chance to work with larger ones to develop, manufacture, and market new products. They also give companies of all sizes the opportunity to increase sales, gain access to wider markets, and enhance technological capabilities through research and development (R&D) underwritten by more than one party.

Buy back arrangements

Provision in a contract under which the seller agrees to repurchase the property / equipments at a stated price upon the occurrence of a specified event within a certain period of time. Or the supplier of the plant / equipment or technology agrees to purchase the goods produced with that equipment or technology. Or a Conversion process i.e. supplier of the raw materials will supply technology formulation and purchase as the finished goods as per their specifications.


Licensed Manufacturing / Franchise /

Any  manufacturing Company in one country  ( the licenser )  enters in to a agreement with another company  in another country  ( the licensee ) to use Manufacturing processing ,trade mark or name patent technical assistance  etc are provided by the licenser .In exchange the licensee pays the agreed royalties to the licenser  It is similar to Franchise in  Service sector that the franchisor gives the permission to the franchisee for use of product, service and trademark. The entire business format is also taught to the franchisee including marketing, selling, inventory, and accounting etc


Merger and Acquisition

Merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals." Both companies' stocks are surrendered and new company stock is issued in its place. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies, is considered as a merger or an acquisition i.e. really depends on whether the purchase is friendly or hostile and how it is announced.

INSBO is an export import consultancy and promotional firm organized by External trade consultants, www.insbo.in   as a B2B portal and trade directory World wide Company profiles are enlisted here Free of cost..

# # #

www.insbo.in is a export import promotional firm organized by External trade consultants, organized www.insbo.in as a B2B portal and trade directory act as World trade platform .INSBO persevere to offer all Export import services under one roof .