Use of Consignment to Expand Export Operations

Abstract

In the article, the author considers the use of consignment in international trade in a new way. If earlier it was one of the methods of penetration into a foreign market for the sale of goods with the lowest costs, now consignment warehouses are considered as platforms for increasing exports to other countries. The author analyzes the principle and features of consignment, as well as the opportunities for “jumping” into the markets of neighboring countries. As an example, the consignment operations of foreign companies in the United Arab Emirates and in particular in Dubai are overviewed. Export expansion opportunities for certain goods from consignment warehouses from the UAE to African countries are considered.