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International Trade Transaction

International Trade Transaction. 6th Lecture. Steps for market-entry 1. On the behalf of / for the account /at the risks of his principal: Sales representative → not subject to VAT tax law; Not entitled to conclude a concrete deal ; fixed salaried; employee;

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International Trade Transaction

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  1. International Trade Transaction 6th Lecture

  2. Steps for market-entry 1. On the behalf of / for the account /at the risks of his principal: • Sales representative→ not subject to VAT tax law; Not entitled to conclude a concrete deal; fixed salaried; employee; • Agent→ professional; commission fee; • Types: • salaried (retainer;) stockiest; consignment stokiest;after-sale services; del credere;

  3. Steps for market entry 2. On the behalf of / for the account of/ at the risks of his own; Distributor→ contract of sale and contract of agency;mark-up; full liability for the products towards customers; Liable jointly and severally towards consumers; takes on financial (liquidity), performance risks as well; Types of distributors: after-sale service, stockiest; Re-exporter: Types: covered vs. not-covered; transitor;

  4. Steps for market entry 3. On the behalf of his own, but for the account of and at the risk of his principal: Export-management company→ contract of sale with the foreign partner+ contract of agency with the domestic partner; Limit price;Commission fee+Premium; Takes on all potential liability towards foreign partner because it acts as if it were the original supplier/or final purchaser;

  5. Steps for market entry 4. Trading House: all functions, but especially Financing; Aggregating the demand and the supply→ having the large-scale position; All linked operations: warehousing, transportation, logistic services; Clerical work; Sogo shosha; London specialized in;

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