Экз темы / business tipics / International trade is the exchange of goods and services between different countries

Selling

International trade is the exchange of goods and services between different countries. Depending on what a country produces and needs, it can export (send goods to another country) and import (bring in goods from another country)

.Governments can control international trade. The most common measures are tariffs (or duties) and quotas. A tariff is a tax on imported goods, and a quota is the maximum quantity of a product allowed into a country during a certain period of time. These measures are protectionist as they raise the price of imported goods to 'protect' domestically produced goods.

International organisations such as the WTO (World Trade Organisation) and EFTA (European Free Trade Association) regulate tariffs and reduce trade restrictions betwei member countries.

Wholesaling is a part of the marketing system. It provides channels of distribution which help to bring goods to the market. Generally indirect channels are used to market manufactured consumer goods. It could be from the manufacturer to the wholesaler, from the retailer to the consumer or through more complicated channels. A direct channel moves goods from the manufacturer or producer to the consumer.

Wholesaling is often a field of small business, but there is a growing chain movement in the western countries. About a quarter of wholesaling units account for one-third of total sales.

Two-third of the wholesaling middleman are merchant wholesalers who take title to the goods they deal in. There are also agent middlemen who negotiate purchases or sales or both. They don't take title to the goods they deal in. Sometimes they take possession though. These agents don't earn salaries. They receive commissions. This is a percentage of the value of the goods they sell.

Wholesalers simplify the process of distribution. For example, the average supermarket stocks 5.000 items in groceries alone, a retail druggist can have more than 6.000 items. As a wholesaler handles a large assortment of items from numerous manufacturers he reduces the problem of both manufacturer and retailer. The store-keeper does not have to deal directly with thousands of different people. He usually has a well-stocked store and deals with only a few wholesalers.

Retailing is selling goods and services to the ultimate consumer. Thus, the retailer is the most expensive link in the chain of distribution. Being middlemen, they make their profit by charging the customer 25 to 100 per cent more than the price they paid for the item.The retailers operate through stores, mail-order houses, vending machine operators. There are different types of retail stores: department stores, discount houses, cooperatives, single line retailers. The major part (over 95 per cent) of retail establishments concentrate on a single line of merchandise for example, food, hardware, etc. But nowadays there is a trend for many single line stores to take on a greater variety of supplies.The retailer performs many necessary functions. First, he may provide a convenient location. Second, he often guarantees and services the merchandise he sells. Third, the retailer helps to promote the product through displays, advertising or sales people. Fourth, the retailer can finance the customer by extending credit. Also the retailer stores the goods in his outlet by having goods available.

There is no business without s&leo. j £ooa bu.-jim5.-3& must ozpafiu Wie expansion of a cqwpcny raeans it can produce ruot-e fpoda or sell more of its products,

A co.apany which yells goods in lav^c quajiti ti os; (in bull;) ia called a yvholeacle distributor (or wholesaler}. Wholeuelling provides channels of distribution. i'!.e wholesaler is tui inter/nodi >_*. between the producer tind the retailor. In homo trude four types' of wholesaler cau be distinguished*

1. She wholesaler who for t» poricd owns i'.;id. vvarohouaea toodo, Lcii OHrrioa out no process in connection '..^fi th them.

2. The wholesaler v-ho owno and stores goods ajid preparoe ti;eiu foi> sale.

3. 1'he wholeanler vjho organises the disti-i'uution of q conunodi l_vv but doean't actually handle it as, for example, the motor-car distributor.

A company oi- a peraqn buyinu goods in relatively aratill quorititie;. fvom wholesaler'and colling them to consumers in shops and markets is q retailer.

'JMiers ere different wnye of oelling.goods.

Direct selling is the practice of a uianufaaturar or iii-.porter i;j sailing goods direct to shopkeepers without uaing the service oC a wholesaler or distributor. l..ail order is cm order for &oofln to \><i eont diraot to -tUo oustomera by-post. There ui-e ir.ail order houses wlxioh sell a v/ide variety of goods from their warehouses. Orders ar; collected or obtained frith the help of an Illustrated catalogue, by agents who are paid by corn-illss^on, -Pi-ices are kept low by avoiding the coat oil running retail ahopa and by buying in bulk. Wliile expanding sales a company may need to employ sales repreaen-tativsa or agents. Aafsnts ere people who have a number of contracts, 'i'hey muJce their money by taking a percentage , any 10>.^;, on every­thing P. Old..

There is also a clearance'Sale wliicli ia q opeclnl celllnfj of Goods at y-tjuced pricea ta clear remaining stocks quickly and to ..lake room for nevf stocks, Home kinds oi goot'a can bo sold p.t' an auction.

Expansion of a company needs the increase of sales. The quickest r .id the euaieat way to increase eales is to persuade ««istfng

customers to buy mox-a of the product, more frequently, to offer now products, to sell to new businesses or buyers* Xhere are many ways of acquiring new customer^, Piratly, you may follow leads. Leads are those people who have approached you, either.ps a result of yuur advertising or having seen your business at an exhibition. Secondly, you may use referrals. y.ou may aak your existing customers if they know of other businesses¹who might be interested in your product or service, Thirdly, you may look for potential customer¹e business, find those who are likely to buy from you. When p. business r;oes well, a company receive* a lot of orders for the goods and ijervicee.

Retailing is the business of selling products to the general public. Most retailers sell from shops or stores which are called outlets. Many countries have large retail chains which are organised nationally and sell a standardised selection of products. Their outlets are often in shopping centres (US malls), where there is a large variety of stores in the same location.

Many large retailers operate from out of town locations with parking facilities, known as either hypermarkets (over 30,000 square metres) or superstores (under 30,000 square metres). They may be on a retail park, where there are a number of large stores.

Department stores such as Harrods in London are large shops which sell a wide variety of products, usually from a city centre location. As the name suggests, they are organised in departments, each with its own manager.