ENTREPRENEURSHIP

Detailed explanation-1: -What is direct exporting? Direct exporting involves an organization selling goods directly to a customer in an international market. Organizations can sell to a wide range of customers, some of whom act as intermediaries in the target market.

Detailed explanation-2: -Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents. D/Cs involve using a draft that requires the importer to pay the face amount either at sight (document against payment) or on a specified date (document against acceptance).

Detailed explanation-3: -The export marketer takes the domestic product “as is” and sells it to international customers. After research has zeroed in on potential markets, there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export marketing program.

Detailed explanation-4: -There are five primary methods of payment in international trade that range from most to least secure: cash in advance, letter of credit, documentary collection or draft, open account and consignment.