{
  "id": 13429740,
  "title": "Pros and cons related to agencies and distributorships",
  "url": "https://urgent.news/2026/10/09/pros-and-cons-related-to-agencies-and-distributorships",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-09T21:00:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/735418/business/pros-and-cons-related-to-agencies-and-distributorships"
  },
  "original_language": "en",
  "account": "Multinational companies seek opportunities to sell their products or services in various markets. They often rely on agents or distributors to handle this task, each offering distinct advantages and disadvantages.\n\nAgents act as self-employed intermediaries, negotiating and concluding sales on behalf of a principal entity without taking ownership of the goods. This arrangement allows the supplier to avoid taking on any liability unless the product is defective. Agents also enable the supplier to monitor accounts and reduce administrative costs, as they do not require an established place of business or hire a salesperson. However, the supplier has limited control over the distributor's activities, and termination of the agreement may not result in compensation for the distributor.\n\nDistributors, on the other hand, assume legal responsibility for the products they sell to their customers. They add a margin to cover their costs and are legally responsible for meeting any obligations arising from the sale. Distributors incur greater risk than agents due to the ownership of the products. Should the distributor's business entity fail to meet its legal responsibilities, they may face lawsuits. Suppliers benefit from passing on risks associated with the products, as the distributor bears the financial responsibility. Distributors must be financially and commercially sound and trustworthy, given the significant autonomy granted to them under exclusive distributorship arrangements. Suppliers must carefully consider the distributor's background and potential liability to ensure a successful partnership.",
  "summary": "Multinational companies are keen in finding markets for their products or services. This is because their products or services cannot be available everywhere, whereas there are potential interested cu...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}