Question

What is an advantage of direct exports?

1) Increased control over distribution
2) Lower transportation costs
3) Access to new markets
4) Reduced risk of currency fluctuations

Answer 1

An advantage of direct exports is increased control over distribution.

Step-by-step explanation:

An advantage of direct exports is increased control over distribution.

When a company engages in direct exports, it has the ability to choose the specific distributors or channels through which its products will be sold in foreign markets. This allows the company to have greater control over how its products are marketed and distributed, ensuring that they are presented and sold in a way that aligns with the company's branding and quality standards.

By having direct control over distribution, the company can also more easily monitor and manage inventory levels, pricing strategies, and customer relationships in the foreign market.