Study on Export Business of Trading Companies

Author Name URABE Sumiko (Ministry of Economy, Trade and Industry)
Creation Date/NO. January 2019 19-P-003
Research Project Dynamics of Inter-organizational Network and Firm Lifecycle
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It's conceivable that trading companies, including specialized trading companies, might support the export of mid-market companies' and SMEs' products, with their functions not exclusive to purchasing and distribution. This paper analyses the realities of the export businesses of trading companies, based mainly on a questionnaire-format survey.

Key findings are that, 1) the difference of the trading companies' location, whether urban or rural, is not significant to the strengths or profits of these exporting firms, 2) specialized trading companies reported increased profits and export volume depending on their areas of expertise and the effectiveness of their business styles, 3) a large proportion of export trading companies have handled products of mid-market companies and SMEs in their exporting business, and preferred dealing in these companies' products over those of larger enterprises, 4) Service charges for exporting other company goods vary depending on the characteristics of trading companies, including their areas of expertise and location, and also on features of the product and the trade itself.

The above facts suggest that taking advantage of export trading companies could lead to expansion of exports for products of mid-market companies and SMEs, and also benefits small and medium sized manufacturing companies in addition to the export trading companies themselves.