Podcast
Questions and Answers
Which of the following roles do trading houses typically not engage in?
Which of the following roles do trading houses typically not engage in?
What is a common practice of wholesalers regarding their purchasing rights?
What is a common practice of wholesalers regarding their purchasing rights?
What can be a characteristic of large chain stores when they purchase directly from exporters?
What can be a characteristic of large chain stores when they purchase directly from exporters?
Which of the following activities is typically not a responsibility of export agents?
Which of the following activities is typically not a responsibility of export agents?
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Why might a ship builder choose to purchase steel sheeting directly from foreign sellers?
Why might a ship builder choose to purchase steel sheeting directly from foreign sellers?
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What is the primary role of foreign distributors in international logistics?
What is the primary role of foreign distributors in international logistics?
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Which aspect is not considered part of the international movement of goods?
Which aspect is not considered part of the international movement of goods?
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What tends to happen as the length of a distribution channel increases in international trade?
What tends to happen as the length of a distribution channel increases in international trade?
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Which of the following is a criterion for determining the length of distribution channels?
Which of the following is a criterion for determining the length of distribution channels?
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What type of transactions do trading houses typically engage in?
What type of transactions do trading houses typically engage in?
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Which of the following is NOT a type of distributor mentioned in international trade?
Which of the following is NOT a type of distributor mentioned in international trade?
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In the context of international logistics, what does cross-docking refer to?
In the context of international logistics, what does cross-docking refer to?
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Which of the following statements about distribution channels is accurate?
Which of the following statements about distribution channels is accurate?
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Study Notes
International Logistics
- International movement is a complex process that encompasses all aspects of logistics, including warehousing, storage, cross-docking, and transportation.
- International logistics also involves customs clearance, financing, risk management, and legal considerations, including bribery and corruption.
Distribution Channels in International Trade
- Distribution channels in international trade refer to the physical routes goods travel from the seller (exporter) to the buyer (importer).
- Choosing the right distribution channel is crucial for successful international marketing, as it can significantly impact profits.
- Longer distribution channels involve more intermediaries, leading to lower profits for the seller.
- Factors to consider when choosing a distribution channel:
- Complexity of technical requirements
- Lifespan of the product
- Price of the product
- Service requirements
- Turnover generated.
Types of Distribution Channels
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Distributors: Act as a principal, purchasing goods from the exporter and selling them directly to wholesalers.
- Distributors are responsible for local customer relationships and delivery to end users.
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Trading Houses: May deal in both imports and exports.
- They can act as agents for either the exporter or the importer.
- Typically involved in single, complete transactions.
- Conduct marketing, manage credit risk, handle documentation, and oversee physical distribution.
- Government Departments: In some countries, government departments may import commodities, often for long-term use.
- Industrial Buyers: Large industrial firms frequently purchase directly from manufacturers, especially when imports are the most cost-effective option.
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Wholesalers: May be direct importers or obtain supplies through distributors.
- They do not typically hold exclusive selling rights but can have a significant market position.
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Retailers and Chain Stores: Large chain stores and franchises often purchase directly from exporters, negotiating exclusive selling rights.
- They usually purchase in bulk and require products packaged in their own consumer packs.
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Export Agents: Individuals or entities authorized to transact business on behalf of the exporter (principal).
- Responsibilities:
- Customer service
- Order tracking and reporting
- Issue resolution
- Promotion
- Market and customer research
- The selling process.
- Responsibilities:
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Description
This quiz covers the complexities of international logistics, including warehousing, transportation, and customs clearance. It also delves into the importance of distribution channels in international trade and the factors that influence their selection. Test your knowledge on these crucial logistics concepts.
