Question

Global expansion often begins with exporting. Using a local intermediary to distribute the exported goods is known as ______.

A. direct investment
B. indirect exporting
C. a joint venture
D. direct exporting

Answer 1

Indirect exporting is the use of a local intermediary to distribute exported goods.

Step-by-step explanation:

The correct answer is indirect exporting.

Indirect exporting refers to using a local intermediary to distribute exported goods. This intermediary could be a distributor, agent, or middleman who handles the logistics of exporting the goods to foreign markets.

For example, a small local business might partner with an established exporter who already has connections and expertise in international trade. The exporter would take care of marketing, selling, and delivering the goods to customers in different countries, while the local business focuses on producing the products.