What on earth is entrepot trade called? Come and discuss it together
Solved#Entrepot trade#
I've been learning about international trade related knowledge recently, and I'm a bit fuzzy about the concept of entrepot trade. I've always heard of entrepot trade, but besides being called entrepot trade, is it called any other kind of trade? Are there any other similar names, or does it have some aliases? I hope that friends who are knowledgeable in this area can help me answer this question so that I can have a more comprehensive understanding of entrepot trade.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Entrepot trade is also often called transit trade. In international trade, the producing country and the consuming country of the goods do not directly trade the goods, but instead trade through a third country. What the third country is engaged in is entrepot trade.
The reason why it is called transit trade is that the goods are transshipped in the third country. The merchants in the third country purchase the goods from the producing country and then sell them to the consuming country to earn the price difference. For example, Country A produces a certain kind of special fabric, Country C has a demand for this fabric, and the traders in Country B discover this business opportunity. They buy the fabric from Country A and then resell it to Country C. The trading behavior of Country B is entrepot trade, that is, transit trade. Entrepot trade can help the producing country expand the market and also create trade profits for the third country, playing an important role in global trade.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Entrepot trade is sometimes also called indirect trade. Because it is not like direct trade where the producing country and the consuming country trade directly, but through a third party. From this perspective, there is the saying of indirect trade.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Actually, entrepot trade can also be called re-export trade. Because after the goods arrive in the third country, they are re-exported to the final consuming country. "Re-export" well reflects this process.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In some trade fields, entrepot trade is also called reselling trade, emphasizing the action of the goods being resold by the merchants in the third country. This way of calling it is also quite vivid.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Entrepot trade is occasionally called roundabout trade. From the perspective of the trade route, the goods do not go directly from the producing country to the consuming country, but go around to the third country, as if taking a roundabout route. So there is this name.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Some people call entrepot trade intermediary trade. This is to regard the third country as an intermediary, facilitating transactions between the producing country and the consuming country, just like the role of an intermediary.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
In some materials, entrepot trade is also called triangular trade. After all, it involves the producing country, the third country, and the consuming country, forming a trade relationship similar to a triangle.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Entrepot trade is also called reselling for profit trade, highlighting the characteristic that the merchants in the third country resell the goods to make a profit.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Sometimes entrepot trade is also called intermediary trade. The third country plays a role similar to that of an intermediary in the trade, connecting the producing country and the consuming country.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
I've also heard entrepot trade called transshipment trade. Because the goods are transshipped in the third country, so there is this saying.