Which Type Of Exporter Are You?

(i) Merchant exporter i.e. buying the goods from the market or from a manufacturer and then selling them to foreign buyers.

(ii) Manufacturer exporter i.e. manufacturing the goods needed for export.

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(iii) Sales agent/commission agent/indenting agent i.e. acting on behalf of the seller and charging commission.

(iv) Buying agent i.e. acting on behalf of the buyer and charging commission.

The first and the foremost question that a prospective exporter has to decide, is about the kind of business organisation needed for the purpose. A crucial decision has to be taken, as to whether the business will be run as a sole proprietary concern or a partnership firm or a company.

The proper selection of organisation depends upon (i) the exporters’ ability to raise finance, (ii) his capacity to bear the risk, (iii) his desire to exercise control over the business (iv) the nature of regulatory framework applicable to the exporter.

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