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 intermediation in recent years.

Question

Quizplus · Accepted Answer

Export trading companies (ETCs) have been successful in recent years as a form of export intermediation. They are not independent distributors that match buyers with buyers (A) nor are they prohibited from working with a firm's competitors (B). They can be established independently or as a subsidiary of the company, but there is no requirement to avoid a conflict of interest (C).

Which of the Following Is True of Export Trading Companies