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When exporting indirectly, is it better to use a merchant or an agent in the export marketing channel? Explain.

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When exporting indirectly, is it better to use a merchant or an agent in the export marketing channel? Explain.

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merchant exporter assumes all  risks in exporting

Therefore, the producer exporter is relieved from the botheration of complying with tedious formalities involved in the export activities.

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takes care of all formalities related to documentation, shipping arrangements, financial, political and credit risks, obtaining licenses from Government departments, etc.

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Does NOT take the title

Producers bare the costs and financial risk

Agent only brings in the seller and buyer

Gets commission

A producer who willing to assume more financial risk may prefer this type of channel.

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TAKES title to the goods and assumes most of the risk.

Take higher commision

Lower risk