Why Would an Exporter Use a Sales Representative or a Distributor

question 73

Essay

Why would an exporter use a sales representative or a distributor? Why would the exporter be reluctant to offer an open account payment method?

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Definitions:

Raw Material

The basic, unprocessed inputs used in the production of goods, often transformed through manufacturing processes into finished products.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Budgeted Net Income

An estimate of a company's net income for a future period, calculated by subtracting all expected expenses from expected revenues.

Cash Receipts

The total amount of cash collected by a business during a period from its various sources.