CBS Investment

Get Updates Via E-Mail!

Trading partner's Articles

Advantages and Disadvantages of Direct and Indirect Exports

exportsWith the opening of Eastern European markets exports and imports became the domain of not only large state-owned trade associations, but also production companies and trading firms.
Export as a whole should be distinguished between direct and indirect, because the mechanisms and tools of development are different. The simplest form of acts is indirect or mediated (oblique) export, where foreign trade activities are carried out through intermediaries, who buy products from manufacturers. In this case there are only indirect relationships between the domestic producers and foreign buyers. Often, the Belarusian production company is engaged in export of goods, attracting domestic and foreign trade companies or exporting firms, which are mostly independent and legally separate entities. At the same time as potential business partners within the framework of indirect export may take part in trade (purchasing) affiliates of the foreign company.