GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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goods are exported from a company through a third party company
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goods or services which are produced in one country and are shipped to another country for sale or trade
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foreign goods and services are shipped into another country and received by the consumer without going through a middle man
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foreign goods and services are shipped into another country and received by a distributor, then sold to the consumer
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goods or services brought into one country from another
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Detailed explanation-1: -Indirect exporting involves an organization selling to an intermediary in its own country. This intermediary then sells the goods to the international market and takes on the responsibilities. These responsibilities include organizing paperwork and permits, organizing shipping and arranging marketing.
Detailed explanation-2: -In many countries, a sizable share of international trade is carried out by intermediaries. While large firms tend to export to foreign markets directly, smaller firms typically export via intermediaries (indirect exporting).
Detailed explanation-3: -Whenever an individual or entity (exporter) makes an export on the behalf of another individual entity or individual (exporter or manufacturer), it is called third-party exports. In such cases, export documents such as shipping bills shall indicate name of both exporter and third-party exporter.
Detailed explanation-4: -What does indirect export mean? Indirect export means you appoint third parties, like agents or distributors, to represent your company and your products abroad.
Detailed explanation-5: -There are five main entry modes of indirect exporting: 1 export buying agent; 2 broker; 3 export management company/export house; 4 trading company; 5 piggyback (shown as a special case of indirect exporting in Figure 10.1).