What Is A Trading Company

Dołączył: 09 Mar 2024 Posty: 1

International trade companies - known as trading companies - are specialists that cover all export and import operations. A trading company buys a product in one country and sells it in different countries where it has its own distribution network. They work mainly in sectors with high production volumes such as raw materials, semi-finished products, metals, chemical products, generic pharmaceuticals, etc. The activities of a trading company include: Identification of suppliers in different countries that have the capacity to supply large volumes of product at competitive prices. Negotiation of the conditions of sale and delivery of products. Financing and collection assurance for the supplier-exporter. Logistics management of the operation. Customs and documentary management. Distribution and sale of the product through the commercial network in the country of origin of the trading company and other countries in which it may be present.

The origin of trading companies dates back to the Italy Telegram Number Data th century when the main European powers established companies to manage trade with their colonies. The first of these companies was the Dutch East India Company, which is considered the first example of a multinational corporation in history and the first to issue capital divided into shares. Based in the Dutch city of Amsterdam, it controlled the spice trade between the East and Europe through a fleet of nearly 5,000 ships that operated in ports in Indonesia, China, Taiwan and Persia. What is a trading company Today trading companies are specialized in countries that are difficult to access in areas of Asia, Africa or Latin America. Their function is to locate product suppliers with whom they sign contracts to supply products that they sell through their commercial network in their country or nearby countries.

Examples of trading companies are the Saudi Bahrawi specialized in the commercialization of food and catering products in Saudi Arabia and other countries of the Persian Gulf or the Brazilian company EmitBrasil specialized in the foreign trade of equipment and machinery for civil construction. Japan is the country in which trading companies – called sogo shoshas – have the greatest presence , controlling half of Japanese exports and two thirds of its imports. On the one hand, they import large volumes of raw materials and machinery that they resell to manufacturers and distributors in Japan and on the other they act as an international sales force for medium and small Japanese companies that do not have the capacity to reach foreign customers. They also act as managers in large contracts of large consortia in which they coordinate the activities of the participating companies with banks and logistics companies.

Wysłany: Sob Mar 09, 2024 10:58