International Marketing Practices

• Export agents and brokers. These trade intermediaries do not take ownership of goods and receive commission on product sales, essentially operating as an extension of the manufacturer by representing them with the end consumer [107, 108]. Agents and brokers operate under their own identity and do not perform promotion functions. However, agents may sometimes offer financial assistance, for example, assuming credit risk and guaranteeing payment, an arrangement known as del credere [20]. Agents and brokers work in the same country as the producer and are good alternatives for companies with relatively small export volumes and minimal export experience, as this approach involves little financial and management commitment. On the other hand, export agents and brokers do not have much control on the export process [1]. The major difference between agents and brokers is the length of the intermediary- manufacturer relationship, as agents usually establish a longer term agreement than brokers, who bring together one-time deals and do not represent the seller [107]. There are several brokerage firms in the U.S. specializing in lumber and other wood products. • Export drop shippers. Also known as desk jobbers or cable merchants, export drop shippers do not physically acquire the product, but they do take ownership for a short period. Drop shippers receive orders from overseas buyers and, in turn, place orders with the producer, who ships the goods directly to the customer. The manufacturer’s risk is relatively low, as drop shippers screen potential buyers and ensure payment reliability. However, drop shippers rarely facilitate a long-term presence in the target markets since they operate very quickly [20]. • Export commission houses and resident buyers. These intermediaries operate in the manufacturer’s home country and are paid by the buyer, effectively serving as a purchasing agent. They also act as a domestic buyer, evaluating different suppliers and making decisions on price and quality. This is a low-risk exporting strategy with prompt payment; however, there is little or no control over product marketing in the target markets. The most prominent difference between commission houses and resident buyers is that the latter are employed by the customers on a semi-permanent basis, providing potential for long-term relationships with buyers in foreign markets [20]. • Export management companies (EMCs). EMCs are often used by firms that export small volumes and act as an extension of the marketing department of small capacity firms, often carrying out promotion, handling, distribution, credit arrangements, and other tasks [1]. EMCs conduct business in the name of the manufacturer, so from the foreign buyer’s perspective, an EMC and the manufacturer are the same company. When using EMCs, the financial and personal investment risk is relatively small; however, they have a rather short- term focus and rarely facilitate long-term presence in target markets. • Trading companies. These intermediaries have a long history of enabling trade between countries by buying and storing goods, negotiating terms of sale, financing, managing logistics, and distributing and selling products. They act as both exporters and importers, and in countries with complex distribution

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