China Tennis Inc.purchased a container of tennis balls from a Canada Sport Manufacturing Inc.China Tennis re-packaged the balls into cylinders each holding three balls and sold them to different sporting goods companies in Asia with the China Tennis logo on the cylinders.What kind of company is China Tennis?

Question

Quizplus · Accepted Answer

China Tennis Inc. acts as an export merchant because it purchases products (in this case, tennis balls), repackages them, and then sells them under its own brand to customers in a different market (Asia). This indicates that China Tennis takes title of the goods and sells them under its own name, which is characteristic of an export merchant.