Final answer:
A manufacturer's export agent is a middleman providing selling services for manufacturers in one or two specific markets. These agents facilitate international sales for manufacturers who find direct exporting costly or impractical. They're essential in global trade, especially for small manufacturers and in the context of multinational corporations.
Step-by-step explanation:
A manufacturer's export agent is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that specifically covers only one or two markets. This type of agent acts on behalf of the manufacturer in foreign markets by facilitating sales without the manufacturer having to establish its own sales operations. Manufacturer's export agents are common in industries where exporting directly can be costly and impractical, especially for smaller manufacturers.
Considering the growing global economic integration and the role of multinational corporations (MNCs), which control the production of goods and services in multiple countries, the significance of manufacturer's export agents remains prominent. MNCs may use these agents to penetrate new markets or to streamline sales operations in established markets while focusing on their core competencies and production efficiencies.
Exclusive dealing agreements, which can be compared to the arrangements manufacturers might have with export agents, can be either legal or illegal based on their impact on competition. These agreements need to be crafted carefully to avoid anticompetitive effects that can bring legal challenges.