Question

What are some of the advantages and disadvantages of using overseas trade distributors?

What are some of the advantages and disadvantages of using overseas trade distributors?

Homework Answers

Answer #1

Explanation:

Advantages:

  • Overseas trade distributors will avail you the reach to international market and lower the other trade risks.
  • This distributors take the whole responsibility of shipment and transportation and all the paperwork of the product.
  • When distributor is well known and well established in overseas market it will be easy to distributer among his contact and provide good market for your product.
  • Distributor will allow you credit to reputed customer also.

Disadvantages:

  • When trade distributors take so much trade related risks, he will expect that you give large discounts and credit from your side.
  • You cannot control the marketing and promotion way of distribution in overseas market.
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