The company, while exporting, should consider the following factors:
- Government policies like export policies, import policies, export financing, foreign exchange ,etc.
- Marketing factors like image, distribution networks, responsiveness to the customer, customer awareness and customer preferences.
- Logistical consideration: These factors include physical distribution costs, warehousing costs, packaging, transporting, inventory carrying costs etc.
- Distribution issues: These include own distribution networks, networks of host country’s Japanese companies like Sony, Minolta and Hitachi rely on the distribution networks of their subsidiaries in the host country.
Export Intermediaries
Export intermediaries perform a variety of functions and enable the small companies to export their goods to foreign countries. Their functions include: handling transportation, documentation, taking ownership of foreign-bound goods, assuming total responsibility for exporting and financing.
Types of export intermediaries include
Export Management:
companies act as export department of the exporting firm (its client). These companies act as commission agents for exports or they take title to the goods.
Co-operative society:
The domestic companies desire to export the goods form a co- operative society, which undertakes the exporting operations of its members.
International Trading Company:
This company is engaged in directly exporting and It buys the goods from the domestic companies and exports. Therefore, the companies can export their goods by selling them to the international trading company.
Manufacturers’ Agents:
They work on a commission .They solicit domestic orders for foreign manufacturers.
Manufacturers’ export agents:
These agents also work on a commission basis. They sell the domestic manufacturers’ products in the foreign markets and act as their foreign sales department.
Export and Import Brokers:
The bankers bridge the gat between exporters and importers and bring these two parties together.
Foreign forwarders:
Foreign forwarders help the domestic manufacturers in exporting their goods by performing various functions like physical transportation of goods, arranging customs documents and arranging transportation services.