Term
Intermediary
What is an intermediary?
Answer
Definition
An agent or entity that facilitates the movement of goods from producers to consumers.
Intermediaries are typically categorized based on the scope of their operation, distinguishing between domestic and international market facilitation.
Understanding the financial and ownership risk each intermediary takes is crucial for supply chain management.
Value Proposition: These intermediaries help overcome geographical, financial, and informational barriers in both domestic and international markets.
What is an intermediary?
An agent or entity that facilitates the movement of goods from producers to consumers.
What role does a wholesaler play in home trade?
Buys large quantities from producers, stores goods, and sells in smaller quantities to retailers or businesses.
How does a retailer differ from a wholesaler?
A retailer sells goods directly to the final consumer, usually in smaller quantities.
What is the function of an agent in international trade?
Represents the seller or buyer in a foreign country but does not take ownership of goods.
What distinguishes a factor from an agent in international trade?
A factor buys goods outright from exporters and sells them in the foreign market, assuming more financial risk.
Why are intermediaries important in trade?
They help overcome geographical, financial, and informational barriers.