1. International Trade Transaction 6th Lecture

2. Steps for market-entry 1. On the behalf of / for the account /at the risks of his principal: Sales representative → not subject to VAT tax law; Not entitled to conclude a concrete deal ; fixed salaried; employee; Sales representative → not subject to VAT tax law; Not entitled to conclude a concrete deal ; fixed salaried; employee; Agent → professional; commission fee; Agent → professional; commission fee; Types: Types: salaried (retainer;) stockiest; consignment stokiest; after-sale services; del credere; salaried (retainer;) stockiest; consignment stokiest; after-sale services; del credere;

3. Steps for market entry 2. On the behalf of / for the account of/ at the risks of his own; Distributor → contract of sale and contract of agency ; mark-up; full liability for the products towards customers; Liable jointly and severally towards consumers; takes on financial (liquidity), performance risks as well; Types of distributors: after-sale service, stockiest; Re-exporter: Types: covered vs. not-covered; transitor;

4. Steps for market entry 3. On the behalf of his own, but for the account of and at the risk of his principal: Export-management company → contract of sale with the foreign partner+ contract of agency with the domestic partner ; Limit price; Commission fee +Premium; Takes on all potential liability towards foreign partner because it acts as if it were the original supplier/or final purchaser; Takes on all potential liability towards foreign partner because it acts as if it were the original supplier/or final purchaser;

5. Steps for market entry 4. Trading House: all functions, but especially Financing; Aggregating the demand and the supply → having the large-scale position; All linked operations: warehousing, transportation, logistic services; Clerical work; Sogo shosha; London specialized in;