Meaning of Indirect Exporting


Meaning of Indirect Exporting

In case of indirect exporting, instead of exporting goods directly to foreign buyers or agents, an exporter prefers to use the services of domestic based specialised agencies as listed below:

(a) Merchant Exporters.

(b) Export Houses.

(c) Trading Houses.

(d) Export Consortia or Co-operative Export House.

(e) Government Agencies such as the State Trading Corporation (SIC) Metals and Minerals Trading Corporation of India (MMTC).


There are several reasons which may compel a firm to export goods indirectly:

(a) Small size of business.

(b) Lack of adequate capital and infrastructure.

(c) Lack of knowledge about foreign markets.

(d) Stiff competition in the international market.

(e) Cautious approach.



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Tan: What is the indirect merchant exporter job from order to importer? What is the step use by exporter to export good by hire indirect merchant exporter to importer?

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