Which of the following is true of export trading companies in the United States?
A) They are like independent distributors that match buyers with buyers.
B) They are prohibited from working with a firm's competitors due to antitrust laws.
C) They must be established independently of the company in order to avoid a conflict of interest.
D) They have been a successful form of export intermediary in recent years.

Question

Quizplus · Accepted Answer

Export trading companies have been successful in recent years as they provide a range of services such as market research, logistics, financing, and risk management to help small and medium-sized companies enter and expand in overseas markets. They act as intermediaries that match buyers and sellers, handle documentation, and facilitate transactions, making it easier for firms to enter foreign markets. Therefore, option D is the correct answer. Option A is incorrect as ETCs match sellers with buyers, not buyers with buyers. Option B is incorrect as there are no laws that prohibit ETCs from working with a company's competitors. Option C is also incorrect as ETCs can either be established independently or be owned by the firm wanting to export.

Which of the Following Is True of Export Trading Companies