What are the criteria used by exporters to screen prospective foreign intermediaries? What are reasons that a relationship between an exporter and an intermediary might become strained? Provide your answers in a short essay
What will be an ideal response?
In general, foreign intermediaries expect exporters to provide:
-Good, reliable products for which there is a ready market
-Products that provide significant profits
-Opportunities to handle other product lines
-Support for marketing communications, advertising, and product warranties
-A payment method that does not unduly burden the intermediary
-Training for intermediary staff and the opportunity to visit the exporter's facilities (at the exporter's expense) to gain first-hand knowledge of the exporter's operations
-Help establishing after-sales service facilities, including training of local technical representatives and the means to replace defective parts, as well as a ready supply of spare parts, to maintain or repair the products
Despite good intentions, disputes can arise between the exporter and its intermediaries about such issues as:
-Compensation arrangements (for example, the intermediary may want to be compensated even if not directly responsible for a sale in its territory)
-Pricing practices
-Advertising and promotion practices, and the extent of advertising support
-After-sales service
-Return policies
-Adequate inventory levels
-Incentives for promoting new products
-Adapting the product for local customers
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