Source of Information

1. Higher profit margins — By eliminating intermediaries, the company keeps all profits from sales.
2. Better market control — The company can control pricing, branding, and distribution strategies directly.
3. Improved customer relationships — Direct interaction allows the company to understand customer needs and build stronger relationships.
4. Enhanced market knowledge — Companies gain valuable insights into customer preferences and competitive dynamics.
5. Stronger brand recognition — Selling directly helps establish the company's brand in the foreign market.
6. Flexibility in decision-making — Companies can quickly adjust strategies to respond to market changes or customer demands.

1. High initial costs — Setting up operations in a foreign market, such as logistics, marketing, and compliance, can be expensive.
2. Increased risk — Direct exposure to foreign markets involves risks such as currency fluctuations, political instability, and market uncertainties.
3. Complex administrative requirements — Companies must handle regulatory compliance, customs documentation, and tax obligations in the target market.
4. Demanding resource allocation — Managing direct exports requires significant time, skilled personnel, and operational resources, which may strain the company.
5. Limited market knowledge — Without local intermediaries, companies may struggle to understand cultural differences, customer behavior, or market nuances.
6. Logistical challenges — Handling transportation, warehousing, and distribution in foreign markets can be complicated and costly, especially for small businesses.

1. Expert assistance — Export intermediaries provide professional expertise, ensuring a higher success rate in the export business.
2. Market expansion — Intermediaries increase the likelihood of establishing and expanding foreign markets by leveraging their networks and experience.
3. Simplified operations in complex markets — Export agents handle activities in complicated foreign market situations, reducing the burden on the producer.
4. Support in repacking and assembly — Intermediaries assist in tasks like repacking and assembling products, which adds value and supports the producer.
5. Reduced financial risk — Since intermediaries manage most of the export process, the producer avoids the costs and risks associated with setting up direct export operations.
6. Time-saving for producers — Producers can focus on production and other core activities while intermediaries handle the export process.

1. Loss of control — Exporters have little to no control over pricing, branding, and marketing strategies as intermediaries manage these aspects.
2. Lower profit margins — Intermediaries take a significant portion of the profits as commissions or fees, reducing the exporter's earnings.
3. Limited market knowledge — Since intermediaries handle the export process, exporters may not gain firsthand knowledge of foreign markets or customer preferences.
4. Dependency on intermediaries — Exporters rely heavily on intermediaries, and inefficiency or failure on their part can negatively impact business.
5. Risk of brand misrepresentation — Intermediaries might not represent the brand as effectively or align with the exporter's values, damaging the company's reputation.
6. Reduced long-term opportunities — Indirect exportation limits the exporter's ability to build direct relationships with customers, which could hinder long-term growth and expansion.

1. Foreign commission agents: These are agents who sells the goods on behalf of the principal and remit the balance of money to the exporter after deducting commission and other expenses by them in the course of selling the goods. They are found in the foreign country where goods are to be sold.
2. Exporters own representatives: These are exporters sales representatives based in the country to which products are to be sold, they collected orders from customers and sent them to the exporter for processing according to the terms of each order.
3. Exporters brokers: They assist exporters to negotiate on ally terms in exporting the goods in return they are paid brokerage for performing the negotiation. They can be locally based or based in other countries.
4. Marketing boards: They are mainly dealing with agricultural exports, selling produce to the agents of foreign buyers by auction or opening offices abroad to boost export of their produce e.g. coffee marketing board.
5. Buying agents: Many overseas firms have their own buying agents in the country who buy the goods for their firms therefore local producers can sell the goods abroad through them.

1. It encourages specialization among countries Countries focus on producing goods and services they can produce most efficiently, leading to higher quality and lower costs.
2. It encourages economies of scale Exporting to international markets allows producers to expand output, which lowers the average cost per unit due to large-scale production.
3. It reduces scarcity of goods By exporting surplus goods, countries can trade for products they lack, helping to balance supply and demand.
4. It stimulates international understanding among countries Trade fosters cooperation, cultural exchange, and peaceful relations between nations.
5. It enables a country to earn foreign exchange through export duties The government collects revenue from taxes on exported goods, and the foreign currency earned can be used to buy imports or pay international debts.

Before engaging in export trade, it is important for exporters to gather the following key information:

1. Place of export (market) Knowing the target country or region helps the exporter understand the demand, consumer preferences, competition, and legal requirements.
2. Kind/type of goods to export The exporter must identify which products are suitable for the international market based on demand, quality standards, and export potential.
3. Marketing strategies This involves planning how to promote and sell the product in the foreign market — including pricing, advertising, branding, and promotion methods.
4. Procedures and documentation Understanding the necessary documents (e.g. invoices, certificates of origin, customs forms) and steps involved in exporting ensures smooth clearance and compliance with laws.
5. Rate of exchange (e.g., Tshs vs Kwacha) Knowing the current exchange rate helps in pricing the goods correctly and avoiding financial losses due to currency fluctuations.
6. Distribution channel to be used The exporter must decide how the goods will reach the final consumer — directly, through agents, wholesalers, or retailers.
7. Trade policy and restrictions It is important to be aware of both local and foreign regulations, tariffs, quotas, or bans that might affect the export process.

1. Board of external trade (BET): Provides trade information to both local traders and firm intending to buy goods from within the country.
2. Chamber of commerce: This institution can give important information to intending exporters on firms and individuals who want to buy good from the country. Example in Tanzania chamber of commerce, industry and agriculture (TCCIA).
3. Consular offices: Can give intending exporters a list of individuals and firms wishing to buy products from the country.
4. International exhibition: Through which traders can exhibit their products and explain their merits to prospective customers who can place big orders.
5. Ministries: In Tanzania we have the ministry of commerce and industries through its department of external trade which is responsible for promoting exports in the international market. I.e. from this department prospective exporter can get useful information on what to export.
6. Other sources like:
   • Reading international business newspapers, publications and magazines.
   • Having personal inquiries to prospective importers in foreign countries.
   • Visiting websites.