As Agents own his or her own business and act on behalf of the principle or a number of principles. This can be the manufacturers and suppliers within the country or outside the country. Agents normally operate on the basis of commissions against completed transections and they agree on the basis of the terms of the contract. Click here to analyse the sample of the import and export agreement and these are some of the benefits of working with the agents.
- The agent, running his/her own business offers a minimum costs and low risk service to the exporter/importer.
- The agent as he/she will be very committed for his/her survival.In this case the agent will make sure to acquire more skills and ability for survival. The exporter/ importer obtains the services of a dedicated professional who has considerable incentives to succeed.
- In the case of the exporter/importer entering overseas market for the first time or extending his/her business in a country not familiar to him/her.The agent plays the crucial role that is LOCAL KNOWLEDGE of business conditions. That covers government policies, political situation and business competitive ness in the country.
- The agent can help you cut the cost of setting up your own offices overseas and recruiting and training your own employees to work there.
- For the exporting company which is in the same country with the agent, the exporter can concentrate on production for the increased market share.
Agent can play more pivotal role on behalf of the exporter or the importer than those I listed above, so what else can the agent do to the exporter/importer to easy up cross border trade and international trade in general?