In what ways and to what extent do the functions of domestic middlemen differ from those of their foreign competitors?
1. Domestic agent usually takes possession of the goods, while foreign agents do not
2. Domestic agent has authority to set prices, foreign agent does not
3. Domestic agent does some promotion and selling
4. Domestic agent occasionally extends credits
The functions of the domestic and foreign middlemen are quite similar in many areas, but there are certain differences. First, the domestic agent usually takes possession of the goods, whereas the foreign agent does not. In the area of setting prices, the domestic agent has the authority to do so, while his foreign counterpart does not.
Both types of domestic middlemen arrange for the shipping of goods, but the foreign middlemen do not. Two other differences exist between foreign and domestic agents. The domestic agent does some promotion and selling, and occasionally extends credit. On the other hand, foreign agents usually do not participate in these activities.