A person or a company that acts as a sales agent on behalf of the exporting company (principal), introducing its products to potential buyers in the external market, in exchange for a commission based on the value of the business deals arranged and paid to the principal. As with the distributor, this relationship does not imply a formal interdependence between the principal and the agent intermediary, unless the laws of the country of destination state otherwise. The mechanism of commission agent or intermediary is therefore very useful to companies that are launching their export operations. This type of contract is ideal for small companies with little or no experience in international trade, as it allows them to access international markets without having to make large investments. Everything is left in the hands of the agent. In foreign markets, the relationship between the sales agent and his clients is governed through the International Sales Commission Agreement. See brokerage; distributor; sales representative.