Using a distributor reduces an exporter's risk, but also weakens the exporter's control over prices charged to buyers.

Question

Quizplus · Accepted Answer

Using a distributor can reduce the risk for the exporter by allowing them to rely on the distributor to handle sales and take on some of the financial risk. However, the exporter may have less control over the prices charged to buyers since the distributor may have their own pricing strategies and may adjust prices based on market demand.

Using a Distributor Reduces an Exporter's Risk, but Also Weakens