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F E XPORT '

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Goods pr d Iced have to b eistribu ted to reach the custo mer i foreign ln rkel . Th ert~
arc \ an ll' di5trihuti 111 ell' ncls lluu which oods can b xported .They are us ~ \low

These con ist of p r n \ 'h ar knowledgeable in the conduct or exports: Trading

Jlouses whIch rc r'
ni7. d b the GovL based on til ir export volumes are known ~ s
;r rt i louses. "l he
ith r product sp cific or COUll try/ region specij~c. An EH 01 .. Y
l:t .md export to D any ountries or the EH may spt: ializ. ' in
soeciaLize in p ifi pr
certain parti lar m'lr 'ts and export a variet f pro. u ts. The are \vell connected \ ith
their foreign eli nl . lin' Ol"irk t knowle ge of prod uct prices, competiturs a tivi tics.
foreign . hang
lJ 'Lliation. rules an regulations etc. and are thus bt'tle r pic C d to
advise a first tim r m 11 finn exp rter. It makes lot of sense to tak. their h ~ lp in
ol'ganlzlIlg e, 'r< 11 (I rough th 'Ill
I

The Ell an a I it
crehan' !... pol't et b ' buyin g the ex port cargo from tht: prodl eer
<md paying him in illcal currency, say ru pee . and at later date exportiJlg the cargo (I t (
diffi':l"(;nt price. I e I roduc r maLcri<1] ha!'; g 11 ~ ([brund atid if the proclll ~ t is pond he can
l: . r Cl r peal rd r" . In this method the risks ar v r ' I w for the goods PI' c1l1~L'I' , l!!d a!'
mol' t the EH r 11 Ind p<.:Ilden Mel'chdllt exp0l1er.

r ile mo '( ommol/ H\' III which tl EH/TH operales is by acting as all interm ed iary
b tw n the lier ilud til forei gn buycr ,oll a commissio n b a sis.. The EH/T H coiiec ts
nlllhe r ccessaT) details [lhe producer ' s pro lIet like quantity. pric e, speci fic ati ons,
p:.lI:ki ng etc II . then tfi~r th s to his foreign cli ents and d pending on the ir r SPOIl$C
interacts WiUl tl1l: local produ cr " ld a leal is nego tiated and final iLed . TIte prod uc er th ell
produc , the rcquir d lood and export them to the foreion party . The exporter gets his
payment g "nernll thru Letter of r it established by the buyer in his favour. Tilt:
EI UTH ,i ll chnrg" n com mission fro m e ither party or from both and it is a matter of
C Sli ng.
this munner the EHITH h as acted l1 S an intcnncdial'v and both the seller
nd Imyel- ha .. come together beca us e they have faith and trust in t he E H/TH.
Near!: 80 In <'>0 % )r rnore ,'port deals are do ne in this manner of indirect 'xport. by
lo::n: proullc 'r '

rn

(:) AgeD t hasis :

The exporter can appoint EHIl H or .1 pur1) abroad to act a~ til >ir agen ts in speciti cd
geographical. gioos and tOl t tJ'lint:d period of time. The agcllt op~ra lc ~ on their beh:lll'
and arrange.' for the lik ly cu t mer abroad to get all the data they want UbOllt the
product or services oni r d y hi principetl. He also gives ,the Indian ompany markc!
intelligence nb ul the a tivitie of coml clitors and also advises how th (~ Indian party
should respond. H get a monthly fi. t; amount for bis services and i he succeeds i
getling orders can also 1 a'r d ( 'ornrn i sion. Agent" arc generally appointed in
products \ hich requir lot orted lical and commercial discussions and take long tim !II
getfmg fUlalizcd and u unll), involve 'cry large sums ofmone),.
2) Direct bv Manufacturel ;

rl hi goods directly y settillr. Ull H expor t marketing cell

wilhin his e 'isting M rk ling Dept nils cell can then arrange f()r entering into
negotiations with Ii reign end users or traders for getting export orders and then arranging
for their manufar..:turc nd then [feeli ng the exports. In this method the producer of goods
has campi 'le control 0 his export. lJc;uall larg companies do their exports directly
thru their c. ' port markeling p on. On of the major advantages is that the producer' s
nW11~ becom s kn v.n il
Xl rt mrui...e and over 0 p riod Q[ time can become a brand .
The kn wlcdg of e 'port markets is gain d fi rst hand and over a period of time the
company has within th iT mploymenl very experienced international trade persons.

I ar)' companies which have a very high reputation and their Brand value is also well
, tHhti:hcd create lOii% OWI1t;:J uhsidiarics which does export and import businc ' .
The 'ubsid iar i.! ssur d f the Principll.::' ::; export business but what is imporlant it c:m
also export the product of other mO l I t~l lurers. In this way its turn over goes lip and it
also earns c mmissi 11 and profitability al (') goes up. In this method the Principle is
cashing on the goodwill fhis brand in international markets and can conclude vcry
beneH i I deals with suppli rs. Exam Ie are LO International, Samsung. BP Chemicals.

4)

ny C

Tl e unorg,oizecl sector is much Ie rg r than organized sector in its output value. But they
cUe g nerally individualistic, scntt red, economically wea~ and lack ability of marketing.
Tiley arc usually exploited by middlemen who buy cheap and sell at high prices both in
d mesti and export markets, Example are handicrafts, agricultural products like
mango ~s, grapes. leather goods, milk and milk products Lijjat Papad, etc .

----,-_ .
cr tb::. ountry, ind ividuall f er' cU Tlo mi ca ll );1I)
ntht!fwlSC weak and do !lot Ita\' a C\!. . [0 l<.; cilnolog " fi !la nCI: and l11arkcti fl g c .:pcrli ';C ,
llow \' r the produt:llh .. pn ducc i in du nand l.' Ve ll in r reign ma rke ts.
T11'O\11..!f<;{nuli

1 ar'

'c,11l

red::lti

p roducts ,
B forming coopcrati\c th ar 'lblc to become a larne and viable p roduc er
he coop rativ arri\n' . [! r collection of product from d ilJerenl locati ons . It also
rrangcs fa unlit if 'pl o nent 'ind incl'cased prod u ction which brings m re
rcvcnu' to lile co J ~ li I I mb rs The PI' du t is centrally collected and th n it i::;
u\'ailahlc for
n, [ I I rofit arc distribut d ar. ongst the mem be rs. In th is I anne r the
a' r s 'ellon o r th s ciety also are all c to cnt ' 'I in tc mati onal
products of po
markets.

.r

v r) important infrastructu re facility to en~ure proper and continuity

of suppl y f rna nal: int the export markets . Warehouses are useful in t ri ng export
m teri Is in pon 10\ ns both in home and foreign markets.
Warehousmg is

Just in tim UPllli an.: n dccl by sa auto rnanufi clurers and havin o warehouse' in
l' reign countries can 'n life this. Aiter ales service requirements can also be met by
storing pr dUCI ubI' ad.
Supply f sea 'om I

0 d which are prod uced once a year but arc to be supplied

throu', out the Yl:ar like a 'ricullw-al goods need to b stored in scientific 8.l1y operated
\\ ar~hvlls ~s ,

eel 'onal demand produ ts an:: produ ed throughout the year but n ed to be supplied
nly during the season Uk fert ilizers, fi re crackers, and need to be stored properly.

Iterj hahle go
hke fmils, eggs, (lowers, medicines etc also need to be stored in cold
storage lype w/hollse I Cl 'ure sUI ply 0 proper product.
for better pric realization and or speculative products to earn higher profits and als
e n ure timely dcliv ric. ware house storage facifities are need d .

LO

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