There are a variety of reasons to use an export trading company like LSI:

1. Provide government laws and regulations in foreign countries for domestic companies. For example, an ETC may be able to provide information about a country’s taxation and copyright laws to the domestic provider. They may also include some contact that one can be connected with inside the international markets, including manufacturers and distributors; it may help domestic companies outsource more easily or enter new markets. In addition, if a domestic company is trying to break into another space, an ETC can facilitate the interaction between both groups.

2. Reduces training costs. Even though the ETC charges a fee for its services, it is far less expensive than hiring staff internationally or formulating a training program. Export trading companies have a network of individuals that are experts in their fields and can answer the appropriate questions to assist companies in the recruitment or training process.

3. Currency hedging strategies. Export trading companies can advise others about the available hedging strategies that reduce exchange rate risk. For example, if a company earns the majority of its revenues from a foreign buyer, the recommendation may be utilize forward contracts to lock in the price of a good in the present-day for the future, to the exposure of the exposure of currency exchange risk between the time the contract is established to when it is fulfilled.