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Reasons for the need of Entrepot trade

From India
To United States of America
276 views / 0 experts
Jun 04, 2020
What are the reasons that some countries need the re-export / entrepot trade?

1 answer

Jun 08, 2020
Hello Robert! I will share with you some of the reason for the need of Entrepot trade. 1.Accessible Trade - non-availability of accessible trade to the destination importing country; 2.Processing Facilities - lacking processing & finishing facilities by importing or exporting country; 3.No Trade Agreement - lack of trade agreement between the two trading countries; 4.Banking Facilities - inadequate facilities available in the importing country; 5.Volume of Trade - volume of trade does not justify to have regular foreign trade; 6.Direct Link - difficult to establish direct link between the exporting country and the consuming country. Basically, these reasons are create the need of re-export trade to still be present nowadays in our society.
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