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The main methods of international trade


The whole cycle of a purchase and sale transaction consists of material and material relations between the seller and the buyer, under the terms of which the seller is obliged to transfer the goods paid for by him to the buyer on conditions favorable to both parties.

The forms and methods of international trade depend on the nature of the relationship between the parties and the main source of sales, which divides them into:

1. Direct method - a transaction between the parties is carried out directly without intermediaries. It is included in the basic methods of international trade and is most suitable for companies and organizations capable of wholesale transactions.

2. Indirect method - a purchase and sale transaction is carried out with the help of intermediaries. The method diagram looks like this: manufacturer - intermediary - buyer. This method helps eliminate competitors working with the same intermediaries, but on better conditions. Modern methods of international trade involve transactions with the help of special agreements: agency, guarantee, commission, and also on the basis of intermediary or distribution agreements.

A mediation agreement is an agreement between a principal and an intermediary, where the principal may be a buyer, seller, customer, supplier and lessor. More information here - https://en.wikipedia.org/wiki/International_trade



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