 Direct BusinessManuel C. Solbach Chapter 4 in International Business Transactions and Taxation, 2023, pp 31-55 from Springer Abstract: Abstract Direct business (sometimes also referred to as export business) is for many companies the most efficient way to conduct crossborder transactions, especially if customer acquisition and retention do not require much presence in the country of the customer. This chapter provides a definition of the basic variances of the direct business model, followed by details regarding the implications for the activities and tasks of the functions of the vendor’s and customer’s enterprise in their respective legal entities. Role, advantages and risks of crossborder agents in direct business are analyzed. It closes with an overview of implications of the direct business model for the customer and for the vendor. Advantages of or preferences for one or the other transactional model depend on the industry, structure, and market position of the companies involved and finally on the countries in question. The choice for a transactional model needs to be the result of a careful evaluation, both before entering into a business with another country, but also for already existing businesses relationships. While the direct business model wins for simplicity, it clearly loses for market presence and flexibility. Date: 2023 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-3-031-39240-5_4 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-39240-5_4 Access Statistics for this chapter More chapters in Management for Professionals from Springer |
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