Approaches to Exporting
Direct Exporting
In this approach, the exporter handles every aspect of the
exporting process from market research to foreign distribution
and collections. A significant commitment of management time and
attention is required, but this approach can maximize profits and
sales growth.
Most Direct Exporters take advantage of one or more sales and
distribution channels in a given market by forming in-country
business partnerships with agents, distributors and/or joint
venture partners.
Exporting Indirectly Through Intermediaries
With this approach, a company engages the services of an
Export Management Company (EMC), an Export Trading Company (ETC)
or other intermediary capable of finding foreign markets and
buyers for its products. The exporter retains considerable
control but gets access to well-established expertise and trade
contacts.
To Find Potential EMCs and ETCs:
Office of Export Trading Company Affairs - Promotes the
formation and use of export trade intermediaries and development
of joint export ventures by U.S. firms.
MyExports.gov - Find EMCs and ETCs specializing in your
industry through this online directory.
Indirect Exporting
Indirect exporting refers to strategies whereby a U.S.
manufacturer or service provider seeks out domestic buyers who
represent foreign end users or customers.
Many U.S. and foreign corporations, general contractors,
foreign trading companies, foreign government agencies, foreign
distributors and retailers, and others in the United States
purchase U.S. products and services for direct export, or as a
supplement to products/services they offer to foreign customers.
In this case a company may know its product is being exported,
but it is still the domestic buyer who assumes the risk and
handles the details.
