Meaning of Direct Exporting

 

Meaning of Direct Exporting:

Direct exporting is the method of exporting goods directly to the foreign buyers by the manufacturer himself or through his agent situated in the foreign country.

Such exporters are also known as manufacturer exporters. Even goods supplied on consignment basis are considered to be direct export.

Firms having a very high turnover generally export their products directly to foreign buyers or middlemen. The degree of risk involved in direct exporting is very high but so are the potential returns.

The organisational arrangements available to an exporter for direct export are:

(a) The export firm may export its products by a domestic based export department or division, such as:

The built-in export department.

The separate export department.

The export sales subsidiary.

The allied export selling company.

(b) It may establish overseas sales branches or subsidiaries.

(c) It may appoint a travelling salesman.

(d) It may appoint distributors and agents in the foreign countries.

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