Types of export management companies
Types of Export Management Companies (EMC
• The first type: representation
It is present in the target market and seeks to attract foreign customers, but operates under its own name as the main manufacturer. So that the invoices are issued in the name of the manufacturer and help it in all stages and details of exporting. In this case, the manufacturer accepts the risk of non-payment and the export management company may offer the price to the manufacturer, but in this case, the decision on the final price is made by the manufacturer.
• The second type: exclusive or non-exclusive distributor
In this type of company, EMC, because it has sufficient control over distribution channels, sets a competitive price for export products and the manufacturing companies follow it. In this case, too, the manufacturer accepts the risk of non-payment.