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Trading intermediary - is an important part of the market economy


Economic necessity and effectiveness of trading intermediary in Global Market of raw materials, semi-finished products, equipment, and services – proofed by working practice in all areas.

Long-term experience of activity has shown that final effect from use of the intermediaries who are carrying out communication between the manufacturer and the consumer of the goods and services is much higher than the creation of the manufacturer's own sales network. (In such a case the manufacturer for a covering of huge expenses (costs) on the realizations of the goods or services should raise considerably the price that sharply would lower their competitiveness on a commodity market and services.)

The role of intermediary services is very great at sale on a commodity market of mass demand. Here intermediary structures carry out an important role on delivery of the goods to the end user. Excepting such structures the overall objective of modern marketing - consumer maintenance with the necessary goods in necessary quantity and assortment, in the conditions of constantly changing requirements of the market couldn't be carried out.

Many foreign researches show that the number of firms-intermediaries constantly grows in world trade and increases. This event is connected with constantly increasing demand of consumers for the goods and services, updating and assortment replenishment.

Firms and the organizations carrying out trading-intermediary services, actively improve the activity at the expense of use of new methods and the technologies successfully applied in all spheres of their activity. It helps to optimize their work, promotes reduction of prices and servicing improvement. Presently many such companies are equipped by the advanced communication facilities, the advanced systems of the account of the goods working in a mode of the real time, the automated systems of registration of accounts and orders.

The given work shows the basic complex of problems of subjects of intermediary activity and modern institute of intermediary. In it the place and a role of intermediaries in the world trade, all kinds and functions of intermediary services, activity trading-intermediary firms, principles of a choice of the form of intermediary, the organization of work of intermediaries, as mutual relations with clients, the sizes and the form of fee of intermediaries is specified at fulfillment of export-import transactions.

Important role of intermediaries in foreign trade activities

Trading-intermediary operations are understood as the operations connected with purchase and sale of the various goods and carried out on the instructions of supplier (the manufacturer or the exporter/importer) the independent trading intermediary on the basis of the agreement entered into between them. To all trading-intermediary operations in world practice carry such kinds of activity as: the distributing and marketing, procuring and trading activity accompanied by contracts of purchase and sale. The firms which are carrying out given operations are independent.

The huge number of transactions in international trade is carried out by means of intermediaries - trading firms, the organizations and the physical persons who are in position between manufacturers of the goods and their end users. To all of them the concept "trading intermediaries", the most widespread in the international commercial practice is quite applicable.

Trading intermediaries in the world market help realization of huge volume of commodity groups: the equipment, raw materials, semi finished products, finished articles, foodstuff, consumer goods. In trade the share of intermediaries in a trading exchange between manufacturers and end users by our calculations makes approximately 80-90 % of a cumulative world exchange of the goods and services.

The huge role of intermediaries is characteristic both for trade in the goods of mass demand, and for trade in finished articles demand on which is limited in in view of their specificity.

Work overall objective through intermediaries - increase of economic efficiency of the foreign trade operations. Despite of expenses on payment of compensation to intermediaries the expediency of operations raises at the expense of following factors:

• use of intermediaries raises efficiency of realization of the goods that promotes increase in profit of the seller at the expense of the accelerated turn of its capital;

• intermediaries, being near to the buyer, know the market is better, operatively react to change of its conjuncture, it helps to realize the goods on conditions more favorable to the exporter, releasing it from many cares connected with sale of goods;

• use of intermediaries gives the chance to raise competitiveness of the goods at the expense of reduction of terms of deliveries, intermediate warehousing and storage of the goods, preselling service and the maintenance service, special marks, product’s manuals in the sale country according to the local requirements;

• for reception of additional profit some intermediaries can finance transactions of the exporter (on the basis of short-term, and intermediate term crediting), investing own capital in creation and functioning of a network of sale that creates economic advantages from means put in the reference;

• intermediaries create possibility for exporters an exit on the new markets, create easy access to buyers, help to optimize expenses for marketing, advertising etc.;

• intermediaries, being in close contact to end users of the goods and services, are sources of the information on the market - its capacities, demand change, position of competitors, sale prospects, the prices and their changes, to modern requirements of a degree of quality and competitiveness. Correct use by the exporter of the given information, allows getting of advantage, to improve tactics and strategy of sales, repeatedly paying back expenses for fee of intermediaries;

• in a case to work through the intermediaries specializing on mass sale of different groups of the goods, usually there is an additional benefit at the expense of decrease in costs on unit of the realized goods.

Studying of practice of international trade shows that small and average firms-suppliers resort to services of trading intermediaries first of all. Use independent intermediaries and the large industrial companies, including transnational.

Estimating a role of intermediaries, it is necessary to consider also that they become almost irreplaceable tool at use by the exporter or the importer of various forms of sale for example, exchange trade, participation in the international auctions (tenders).

Involving the trading intermediary, the manufacturer always should represent accurately possible economic benefit of its activity.

Conclusion: necessity and efficiency of a trading-intermediary link at export-import transactions is quite obvious.

Doing the conclusion: in this area more modern principle should operate: the intermediary - objective necessity.