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Export houses consist of Exporting managers, Export agents and Confirming houses.
Advantages
- All three are local middlemen
- They have experience in the foreign markets
- Has political & economic connections
- Merchants & Agents have specialist skills for counter trade
- manufacture does not bear the overhead cost of exporting
Disadvantages
- The producers has little or no control over his market
- The Goodwill created is the merchants and not the producers
- The contract is short term
- Agents push those products that sell and can neglect others
- manufacturer loose control if he relies too much on them
- Merchants and agents are best suited by short term contracts
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∙ 12y ago
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