How does using an exporting intermediary limit the risk involved with global marketing?

Question

Quizplus · Accepted Answer

Using an exporting intermediary involves limited risk because the company has no direct investment in the foreign country. The intermediary takes care of the logistics and handles any potential risks or issues, leaving the company free to focus on their core business. The intermediary assumes some of the financial risk but not all of it, and while they may help with legal compliance, they do not exempt the company from following laws and regulations. There is no guarantee that the products will be a good fit for foreign markets, as this depends on many factors including market research and consumer demands. Finally, using an exporting intermediary does not restrict a company to joint ventures or prevent direct ownership if desired.

How Does Using an Exporting Intermediary Limit the Risk Involved