Franklin Carpets engages in indirect exporting, so the firm sells its carpets to a(n) ________.
A) domestic customer who then sells the carpets to a foreign customer
B) foreign customer who then sells the carpets to a domestic customer
C) affiliated company located in a foreign country
D) foreign customer through e-commerce

Question

Quizplus · Accepted Answer

Indirect exporting involves a company selling its products to a domestic intermediary (such as an export trading company or an export management company), who then sells the products to foreign customers. This allows the original company to avoid dealing with the complexities of exporting, such as navigating foreign regulations, logistics, and market strategies.

Franklin Carpets Engages in Indirect Exporting, So the Firm Sells