Exporting
is frequently employed mode of internationalization. It is one of the simplest and
most common approaches adopted by firms in their endeavor to enter foreign
markets. Simply we can
define it as, “Exporting is marketing and sale of
domestically produced goods in another country. “
Exporting
can be typified as:- direct, indirect and intra corporate or complementary.
Direct
export
Direct
exporting means that the firm works with foreign customers or markets with the
opportunity to develop a relationship. Here Producer sells directly to the
importer. This mode gives the company a greater degree of control over its
distribution channels.
example:
Indirect
export
Indirect
exporting is the process of exporting through domestically based export
intermediaries. The exporter has no control over its products in the foreign
market. Simply it is a method of exporting goods and services through various
home-based exporters. They can be: manufacturers’ export agents, export
commission agents, export merchants, international firms.
‘piggybacking’
& ‘EMH’s’ is actually known as indirect export.
example:
Intra-corporate
transfer
It
is a process of exporting which includes, sale of goods by a firm in one
country to an affiliated firm in another.
example:
