A customer of a firm enters a foreign market by setting up a manufacturing facility.It tells its suppliers that they will need to supply parts for assembly at the manufacturing facility and for customer service.Therefore,the suppliers are engaged in what kind of exporting?
A) piggy-backing
B) direct exporting
C) franchising
D) a joint venture
E) None of the above

Question

Quizplus · Accepted Answer

Direct exporting,franchising,and a joint venture would suggest relatively aggressive action by the suppliers to enter the market.In this case,they are entering by default.They are piggy-backing on the strategy of an existing customer.

A Customer of a Firm Enters a Foreign Market by Setting