Different Kinds of Export Import Businesses

International trade has come up as one of the most profitable business options these days has its trace to the prehistoric times when the trade was done on a barter system. Foreign trade is based on comparative cost theory. The country exports the product which is abundant in supply in that country and is comparatively cheaper and imports the product which is comparatively expensive to produce in own country.

First off, let's take a sight at the players involved in foreign trade. Exporters and importers can be differentiated by the numerous differences in their main functions:

Export management company (EMC): An EMC manages export procedures for a local firm that wants to sell its items abroad but are not familiar with how (and maybe doesn't want to make out how). The EMC does it all, hiring distributors, dealers and representatives; managing promotion, marketing and endorsements; supervision packaging and marking; organize transportation; and occasionally arranging funds. In some matters, the EMC even takes title to the products, in spirit becoming its own distributor. EMCs generally specialize in product line, overseas market or both, and unless they've taken title--are paid by commission, salary or allowance plus commission.

Export trading company (ETC): While an EMC has commodities to sell and is using its energies to search for buyers, an ETC focuses the other side of the trading coin. It makes out what overseas buyers want to spend their money on and then hunts down local sources willing to export. An ETC occasionally takes title to the products and sometimes works on a commission basis.

Export - Import merchant: This global entrepreneur is a kind of a free mediator. He has no precise client base, and he doesn't focus in any one business or line of goods. Instead, he obtains goods directly from a domestic or foreign manufacturer and then packs, ships and resells the goods on his own. This means, of course, that unlike the EMC, he assumes all the perils (as well as all the earnings).

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