As with a sales representative, the length of association is established by contract, which is renewable if the arrangement proves satisfactory. Click here for more details of distributor's agreements. Some details on the business and legal practices specific to various countries regarding agreements with distributors and agents are available by clicking here . Foreign Retailer - This method relies mainly on direct contact by traveling sales representatives, but can also be accomplished by the mailing of catalogues, brochures, or other literature. However, even though it would eliminate commissions and traveling expenses, the manufacturer who uses the direct mail approach could suffer because his proposal may not receive proper consideration.
Opportunities often arise from advertisements in magazines receiving overseas distribution.
Many times this can create difficulties because casual inquirers may not be fully aware of their country's foreign trade restrictions. For several reasons, they may not be able to receive the merchandise upon arrival in their country, thus causing it to be impounded and possibly sold at public auction, or returned on a costly freight-collect basis. This term applies to countries that have state trading monopolies, where business is conducted by a few government-sanctioned and controlled trading entities. Because of worldwide changes in foreign policy and their effect on trading between countries, these areas can become important future markets. For the time being ,however, most opportunities will be limited to such items as raw materials, agricultural machinery, manufacturing equipment, and technical instruments, rather than consumer or household goods.