As discussed in chapter 5 of our textbook, exporting is selling domestically produced products to buyers in other countries (pg. 75). The company is able to sell directly to foreign importers or buyers. Exporting is determined to be the least complicated and least risky alternative. The United States is the world's largest exporter.
For example, there are three types of intermediary. The most common one is the export merchant (buyer for export) which is treated like a domestic customer by the domestic manufacturer. The second type of intermediary is the export broker who plays the traditional broker's role by bringing buyer and seller together. The third type of intermediary is export agents because they are foreign sales agents/distributors who live in the foreign country and perform the same functions as domestic manufacturers' agents that help with international financing and also shipping.
In my opinion, I feel like the buyer for export is the most important because they assume all the risks and sells to other countries based on its own. They are taking such a huge risk on this but they know that in the end it is worth it because different countries admire their products because they want to purchase it.
Which intermediary do you think is the least important? Which do you think is the most important as to getting more customers?
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