Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/157660 
Year of Publication: 
1999
Citation: 
[Editor:] Dimitrov, Pavel [Title:] Logistics in the Transition Economy. Papers from the Second International Conference "Logistics in the Changing World" (Theory, Practice, Education), Varna, July 12-13, 1999 [Publisher:] University of National and World Economy [Place:] Sofia [Year:] 1999
Publisher: 
University of National and World Economy, Sofia
Abstract: 
The paper focuses on the role of wholesaling in the establishment of international distribution channels with respect to the transaction costs associated with the sale of goods on the international market. The first part of the paper is devoted to the peculiarities and conditions of the domestic market and the participation in it of domestic wholesalers. The main idea is that of the necessity of wholesaling in terms of transaction cost reduction. A model is presented revealing a distribution channel with and without an intermediary as a link between the producers and the retailers. The paper argues that wholesalers have a vital role in bringing down the costs of transacting as well as in the proper and efficient functioning of the very distribution channel. The second part of the paper discusses the international market in its complexity and size compared to local markets. This is done in the context of the transaction costs faced by large international corporations. The focus is again on these costs which turn out to be the reason for firms to internalize their market operations expanding thus their size.
Subjects: 
transaction costs
wholesaling
international distribution
JEL: 
D23
F18
M21
M31
Additional Information: 
In memory of Associate Professor Ivan Iliev.
Document Type: 
Conference Paper
Document Version: 
Manuscript Version (Preprint)
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