Question

Explain the various functions of Export Trading Houses.

Answer 1

The functions of export house are mentioned below:

1. Identifying potential market for a product
2. Finding buyers and their agent and eliciting their response for export proposal.
3. Establishing product specification in the light of market needs, standards and regulation in accordance with suppliers capabilities.
4. Determining appropriate mode of transportation and routing keeping in mind the cost, quality of service and security.
5. Preparing the goods for delivery at destination.
6. Determining buyer’s creditworthiness.
7. Negotiating the transactions.
8. Arranging proper insurance coverage against maritime risks and currency fluctuations.
9. Financing the transactions and paying for goods and service received.
10. Preparing document for international trade.
11. Settling claim.