外贸函电Unit 13 Agency详解.pptVIP

Unit 13 Agency * Agency can simply indicate such a relation that the exporter empowers a foreign businessman to conduct business performance abroad. The former is called principal, the latter agent. Introduction * Introduction When a company seeks to develop its markets in other countries, it often resorts to the help of agents, who will be employed to represent the company to sell its products. * An important for appointing agents is their knowledge of local conditions and of the markets in which they will operate. In developing foreign trade, agents often play a very important role, for they know what goods are best suited to the area and what prices the market will bear. Introduction * As for as buying and selling are concerned, there are mainly two types of agents: General agent; Sole agent(exclusive agent). Introduction * A general agent may be a firm or a person who acts under some degree of instructions from his principals of sell (or buy) goods on the best terms obtainable. He charges a commission for his services under some kinds of agreement or contract. Introduction * Similar to a general agent, a sole agent may be firm or a person who acts for one foreign principal with exclusive agency rights to sell on a commission basis certain commodities in a certain area under some kinds of agreement or contract. Introduction * In choosing an agent, either a firm or a person, the company should make searching enquiries into the qualifications, experience and personal qualities of prospective agents, for example: Introduction * Their reliability and financial soundness; Their market connections and the effectiveness of their sales organization; Their technical ability to handle the goods to be marketed; The nature and extent of other agencies they may hold, and in particular, whether these are connected with the sale of competing products. Introduction * The terms of agency are sometimes set out in correspondence between the parties, but when dealings are on a large