Foreign economic activity. Types of trading and intermediary companies (the most important)

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Foreign economic activity. Types of trading and intermediary companies (the most important)

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15. Types of trading and intermediary firms

Most clearly, foreign economic functions (organizational, economic and commercial) can be traced in the activities of foreign trade firms (WTF) as part of export-oriented enterprises and sectoral foreign economic associations (VEO).

As part of enterprises, organizations and associations operating in the foreign market without intermediaries and having conditions for the implementation of stable export supplies of their competitive products to the foreign market, foreign trade firms are created, which are a kind of firm.

In international practice, a firm is considered as an economic structure that has become isolated in the process of production and technical division of labor, registered and/or operating in the appropriate organizational and legal form under the laws of the country of location.

Depending on the nature of the operations, the following are distinguished: types of trading and intermediary firms:

▪ purely trading;

▪ commissions;

▪ agency;

▪ brokerage.

trading firms transact on their own behalf and at their own expense and are of two types: independent resellers and contract merchants.

Independent resellers conclude contracts for the purchase of a consignment of goods, and then sell the goods at agreed prices in any market. These are large firms that have their own warehouses and vehicles and are engaged in wholesale operations.

Traders under the contract enter into contracts with a producer firm for the sale of goods on certain conditions: with the definition of price, market, term and sale. Such firms are called official dealers or distributors, whose services are resorted to by industrial companies that manufacture products, transferring to them the functions of implementation.

Commission firms (commission agents), unlike trading firms, do not purchase goods from producers, but carry out operations for the sale and purchase of goods on their own behalf, but at the expense of the client-committent. A variety of commission transactions is consignment, which involves the receipt of goods at the warehouse of the consignee, and then for sale.

Agency firms search for clients, representing the interests of manufacturers and acting on behalf and at the expense of the latter. The agent may also be given the right to sign a contract by proxy.

Unlike agency brokerage firms are not representatives of one of the parties to the contract of sale. Their duty is reduced only to finding partners and bringing the parties together for a brokerage fee.

The listed functions are fully or partially (depending on the legal status) characteristic of foreign trade firms operating on the Russian market.

For the most part, foreign trade firms formed as part of Russian exporting enterprises are not legal entities, carrying out foreign trade activities on behalf of, on behalf of, and in the interests of the exporting enterprise. However, many foreign trade firms that have successfully passed the period of formation and achieved serious results in the process of foreign economic activity acquire the status of a legal entity and greater independence in carrying out export-import operations. But even in this case, they continue to act on behalf of the enterprise, realizing its interests in the first place. This is the fundamental difference between a foreign trade firm and firms that are part of foreign economic organizations of the Ministry of Economic Development of Russia.

Author: Bobkova O.V.

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