Indirect exporting occurs when a firm sells its domestically produced goods in a foreign country
A) in violation of a quota.
B) without paying import tariffs.
C) without paying export duties.
D) through an intermediary.
E) through a joint venture.

Question

Quizplus · Accepted Answer

Indirect exporting involves a firm selling its products to an intermediary, who then exports the products to a foreign country. This allows the firm to avoid the complexities and costs associated with direct exporting, such as locating overseas buyers, dealing with customs quotas, tariffs, and import/export licensing requirements. It also helps the company to minimize the risks involved in trading with foreign customers.

Indirect Exporting Occurs When a Firm Sells Its Domestically Produced