Buyer-seller links in export development

How can less developed countries (LDCs) attract collaborative business relationships? And how can existing relationships with buyers be deepened to maximize transfer of knowhow? To answer these questions the authors have chosen to focus on imports of shoes and bicycles into the United States. Shoes and bicycles are good case studies because U.S. consumption of these products is heavily dependant upon imports. Many types of buyer-seller relationships exist in these industries and interesting changes in the pattern of relationships are occurring. The paper is based on the perceptions of buyers. It is based on interviews in the United States with mid-level and senior managers who are responsible for their firms' international sourcing and investment decisions. Buyer firms include manufacturers, retailers, importers, buyer's agents, and joint venture partners. The authors conclude that, ultimately, the efforts of buyers and suppliers will determine whether export links are formed and how effective they are. However, government measures can support domestic firms in forming long term relationships. Such measures may be viewed as occupying the middle area between macro policy (exchange rates, import policies, export regimes) and micro, firm level coupling with overseas companies. The authors spell out some promising government measures in the concluding chapter.