You are on page 1of 7

Tema III.

Export/nonexport entry modes

Indirect export could be done through international marketing organizations or through cooperative organizations. Marketing organizations are two types merchants and agents. Distinction merchants are taking ownership of the products, while agents not.

Basic rule-they are working in both directions.Tema III. Home country based agents: export commission house. Trading company. resident buyer. broker. Export/nonexport entry modes Home-country based merchants Export merchants. confirming house. . Export desk jobbers are used in trading of raw materials. manufacturers export agent. export Management company.

orders already placed. representing all overseas buyers. .Tema III. Confirming house – to assist overseas buyer by confirming. Resident buyer – similar to ECH. Export/nonexport entry modes Export commission house – representative of foreign buyer. Broker – specialist in performing of the contractual function.

MEA – does not offer to the manufacturer all services as EMC. Export/nonexport entry modes EMC – international sales specialist.Tema III. . functioning as the exclusive export department for several allied but noncompeting manufacturers.

export cartels. Exporting combinations: marketing cooperative organizations.Tema III. Export/nonexport entry modes Cooperative organizations Piggyback marketing – one manufacturer uses its own distribution facilities to sell products of other company. .

Tema III. THUS QUASI INDEPENDENT. EXPORT SALES SUBSIDIARY –FULLY-OWNED BY PARENT ORGANIZATION. BUILT-IN EXPORT DEPARTMENT 2. SEPARATE EXPORT DEPARTMENT 3. Export/nonexport entry modes DIRECT EXPORT. EXPORT SALES SUBSIDIARY.COMPANY SELLS DIRECTLY TO THE IMPORTER OR BUYER LOCATED IN FOREIGN MARKET. HOME-COUNTRY BASED DEPARTMENT: 1. SEPARATE EXPORT DEPARTMENT – SELF CONTAINED AND SELF-SUFFICIENT UNIT. . BUILT-IN DEPARTMENT – SIMPLEST STRUCTURE AND EASIEST WAY.

Tema III. Licensing.Assembly operations can be set up. Export/nonexport entry modes Nonexport entry modes 1.Strategic alliances can be formed.Manufacturing plant can be established. 2. contracting and joint ventures three major types of the strategic alliances. 3. .